Crypto Crash: You Won’t Believe How Much Money Just Disappeared! šŸ’øšŸ˜±

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 billionsā€”yes, billions!ā€”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 weā€™re looking at a $10 billion crater in open interest for perpetual swap contracts. I guess some crypto assets were like, ā€œHey, weā€™re doing fine!ā€ while others were just screaming, ā€œHelp! Weā€™re in turbulence!ā€

Perpetual Swaps: The Billion-Dollar Blunder

Bybitā€™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. Itā€™s like watching a bad magic trickā€”now you see your money, now you donā€™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. Itā€™s like the universe is trying to tell us something. And just when you thought it couldnā€™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!

ā€œBTCā€™s open interest didnā€™t fall like the rest of the perpetual swap markets. Itā€™s like itā€™s got a secret stash of good luck or something,ā€ the report said.

ETH Takes a Dive

Now, letā€™s talk about altcoins. They were not having a good time. ETH was leading the charge downwards, with realized volatility shooting up over 140%. Itā€™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 etherā€™s implied volatility soaring, traders are bracing for more chaos. Itā€™s like waiting for the next episode of a reality showā€”you know itā€™s going to be wild, but you canā€™t look away!

Read More

2025-02-08 15:45