Crypto Crash: You Won’t Believe How Much Money Just Disappeared! 💸😱

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So, the week kicked off like a bad sitcom, right? The U.S. financial markets, including the crypto circus, took a nosedive after President Trump decided to throw some trade tariffs at Canada, Mexico, and China. I mean, who knew tariffs could be so… dramatic? Cryptocurrencies lost billions—yes, billions!—like they were playing a game of Monopoly and someone flipped the board.

According to this weekly report from Bybit and Block Scholes, it turns out we’re looking at a $10 billion crater in open interest for perpetual swap contracts. I guess some crypto assets were like, “Hey, we’re doing fine!” while others were just screaming, “Help! We’re in turbulence!”

Perpetual Swaps: The Billion-Dollar Blunder

Bybit’s CEO, Ben Zhou, dropped the bombshell about the $10 billion wipeout. Meanwhile, Bitcoin, Ethereum, Ripple, and Solana were busy losing over $3.1 billion in open interest. It’s like watching a bad magic trick—now you see your money, now you don’t!

And get this: trading volumes for perpetual swaps shot up to a whopping $31 billion as traders scrambled to bail out. It was like a game of musical chairs, but guess what? A lot of folks missed their margin calls and ended up liquidated. Ouch! Talk about a rough Monday!

Monday was the second week in a row that started with a sell-off. It’s like the universe is trying to tell us something. And just when you thought it couldn’t get worse, DeepSeek, a cheaper AI model, waltzed in and made things even messier. Perpetual swap funding rates? Spiraling down like a bad rollercoaster ride. Only Bitcoin managed to keep its head above water. Lucky guy!

“BTC’s open interest didn’t fall like the rest of the perpetual swap markets. It’s like it’s got a secret stash of good luck or something,” the report said.

ETH Takes a Dive

Now, let’s talk about altcoins. They were not having a good time. ETH was leading the charge downwards, with realized volatility shooting up over 140%. It’s like ETH decided to throw a tantrum. And guess what? Its spot price plummeted to $2,500. Talk about a dramatic fall from grace!

With ether’s implied volatility soaring, traders are bracing for more chaos. It’s like waiting for the next episode of a reality show—you know it’s going to be wild, but you can’t look away!

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2025-02-08 15:45