February 3rd marked a historic milestone for the crypto market as within just 24 hours, a series of disruptive events occurred, from President Donald Trump's tax policy to a liquidation of up to 10 billion USD, while opening up new opportunities for groundbreaking investments.

Impact of Ad hoc Tax Policy

Shortly after taking office, President Donald Trump imposed a series of surprise tariffs on China, Canada, and Mexico. These countries did not hesitate to retaliate against goods imported from the United States, leading to a fierce trade war and raising concerns in the global trading community. The ripple effects of this policy not only affected the traditional economy but also had a strong impact on the digital asset market, which has been witnessing extreme volatility.

Shock From $10 Billion Liquidation

Just after Trump’s announcement, the crypto market faced a major shock: a $10 billion liquidation occurred. This is considered one of the largest liquidation events in the history of the crypto industry. According to data from Coinglass, the total value of liquidations on February 3 was recorded at about $2.24 billion. However, the CEO of the Bybit exchange, Mr. Ben Zhou, said that the actual number is much higher.

In his detailed post, Ben Zhou asserts:

“I am concerned that the actual liquidation volume today is much higher than the reported $2 billion. My estimate is that it should be around $8 to $10 billion. Bybit’s 24-hour liquidation volume alone reached $2.1 billion. Bybit’s liquidation data on Coinglass only recorded around $333 million, due to API limitations in transmitting data per second. From my observation, many other exchanges have also adopted similar methods to limit the disclosure of liquidation data. Therefore, from now on, Bybit will push all liquidation data out, to ensure transparency.”

Mr. Zhou's assertion not only raises questions about the accuracy of the published figures, but also highlights the unprecedented level of market volatility, which could potentially alter future trading trends.

New Hope In The Midst Of The Storm

Although the shock of the massive liquidation has shaken the confidence of many investors, the crypto industry has not completely lost hope. Amid rumors of an escalating trade war, big investors continue to pour money into the digital market. A typical example is the impressive investment of OG Foundation with a sum of up to 88.88 million USD. This investment is expected to promote the development of AI-powered decentralized finance (DeFi) applications, opening a new chapter for innovation and development of the industry.

Future Outlook and Outlook

The $10 billion liquidation is not only an impressive figure in terms of scale, but also a clear manifestation of the instability in the crypto market, when macroeconomic factors and global trade policies can strongly affect investor sentiment. Transparency in the disclosure of transaction data, as committed by Bybit, is expected to help investors grasp the real situation of the market, thereby making more accurate investment decisions.

While many experts warn of long-term challenges, the emergence of strategic investments like those from the OG Foundation is a breath of fresh air, showing the potential for recovery and growth of the crypto industry. Technological innovations, especially the combination of AI and DeFi, promise to create innovative applications, improving efficiency and security in transactions.

Conclude

In a tumultuous 24 hours on February 3, the crypto market suffered a major shock with a $10 billion liquidation – an event that could change the trading landscape and predict the industry’s future trends. Despite the negative factors from global economic policies, the emergence of strategic investments in cutting-edge technology such as AI-powered DeFi opens up new opportunities for recovery and growth.

These developments confirm that, in the context of the global economy facing many challenges, the crypto market is always a place where risks and opportunities intersect. Investors need to closely monitor changes and new trends, and carefully consider risk factors when making investment decisions in a volatile market with many potential opportunities.

Stay tuned for further developments in the crypto market and stay updated with expert commentary so you don't miss any opportunities in this challenging yet promising time.