Want to Know What Happened in Crypto Today? Key Updates You Can't Miss
Stay updated on the latest crypto market trends, major price movements, and key regulatory developments shaping the future of digital assets.
By Tylt Editorial Team
Ethereum dropped 16% to $2,368 as altcoins suffered heavy losses
India signals a potential shift in crypto regulations to stay competitive
A trader earned $16 million by shorting Ethereum amid market turmoil
The cryptocurrency market faced another wave of selling pressure as major altcoins, including Ethereum, Cardano, and Avalanche, suffered significant losses. Ethereum plunged 16% in just one hour, falling from $2,648 to $2,368 on February 3, as investors reacted to President Donald Trump’s latest tariff measures on China, Canada, and Mexico.
Avalanche, XRP, Chainlink, and Dogecoin also saw steep declines of over 20%, leading to an 11.4% drop in the overall crypto market cap, which now stands at $3.17 trillion. According to Markus Thielen, founder of 10x Research, the sell-off was exacerbated by stop-loss triggers and a lack of retail buying, as trading volumes have been declining in recent weeks.
In a separate development, India is reassessing its stance on cryptocurrency amid global regulatory changes. Economic Affairs Secretary Ajay Seth acknowledged that digital assets do not adhere to national borders and suggested that India could revise its policies to remain competitive in the evolving financial landscape. His remarks follow Trump’s executive order establishing the Working Group on Digital Asset Markets, which aims to shape crypto policy in the United States.
Meanwhile, a savvy cryptocurrency trader made headlines after profiting nearly $16 million from Ethereum’s price drop. The trader executed a 50x leveraged short position when Ethereum was trading at $3,388, betting on its decline. By the time ETH fell to $2,647, the trader had accumulated $15.7 million in unrealized profit, along with an additional $2.3 million from funding fees. While leveraged trading can amplify gains, it also carries significant risks, as seen in past cases where traders lost large sums due to liquidation.
As the market grapples with geopolitical uncertainties and regulatory shifts, investors remain cautious about the future direction of digital assets. With Ethereum and other major cryptocurrencies facing heightened volatility, the coming weeks will be crucial in determining whether the market stabilizes or experiences further declines.
