Here’s what happened in crypto today
Today in crypto, India’s government reconsiders crypto stance amid global regulatory shift, a savvy cryptocurrency trader has made nearly $16 million by capitalizing on Ether’s recent price decline, and Bitcoin fell below $100,000 following US President Donald Trump imposing stringent import tariffs.India reconsiders stance on crypto amid global regulatory shiftThe government of India is reconsidering its stance on crypto amid a global regulatory shift toward digital assets and increased nation-state adoption.According to Reuters, India's economic affairs secretary, Ajay Seth, said that digital assets "Don't believe in borders" and that India is reconsidering its crypto policies to avoid the risk of falling behind other countries.Seth's comments follow US President Donald Trump's recent executive order establishing the Working Group on Digital Asset Markets — an advisory body that will help shape crypto policy and explore the development of a US strategic crypto stockpile.Ethereum trader earns $16 million as ETH price falls to $3,000A savvy cryptocurrency trader has made nearly $16 million by capitalizing on Ether’s price decline.The trader generated $15.7 million worth of unrealized profit on a leveraged Ether short position, which involves “borrowing” the underlying cryptocurrency from a broker, selling it at the current price and then repurchasing it once the price falls — a strategy used by traders to bet on the price decline of an asset.The trader opened the 50x leveraged short position when ETH traded at $3,388, with a liquidation threshold of $4,645, Hypurrscan data shows.The trader earned an additional $2.3 million worth of funding fees on their leveraged position.While leveraged trading can potentially increase returns, it can significantly amplify downside risks and lead to the loss of the initial investment.In January 2024, a pseudonymous trader lost over $161,000 worth of funds in a single trade after being liquidated on a leveraged position, illustrating the risks of leveraged trading.Bitcoin falls below $100,000 following Donald Trump imposing import tariffsBitcoin has dropped below $100,000 for the first time in six days following US President Donald Trump signing an executive order to impose import tariffs on goods from China, Canada, and Mexico.The imposed tariffs have already triggered retaliation from the three countries, and the crypto industry is divided on how this will affect the broader market.According to a Feb. 1 statement from the White House, “Trump is implementing a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff.”The statement said that “Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”Tariffs could raise inflation, leading to higher interest rates, which typically causes investors to move away from riskier assets like crypto and toward more traditional assets like bonds and term deposits.