Crypto Bloodbath: $2.3B Liquidations as Altcoins Plunge, Bitcoin Dominance Soars

Crypto markets are experiencing a significant downturn, with liquidations reaching an all-time high of $2.3 billion. The sell-off, triggered by the escalating U.S.-China trade war, has led to a massive decline in altcoins, with some losing more than 50% of their value. Ethereum (ETH), the second-largest cryptocurrency, has fallen by 35%, leading the losses among major cryptocurrencies. Bitcoin (BTC) dominance has neared a four-year high, indicating a flight to safety among investors.

The crypto market is expected to see $3 billion worth of unlocks in February, led by Solana (SOL). Despite the market downturn, stablecoin total value locked (TVL) has hit a new record of $218 billion. Some altcoins, such as HYPE, have seen buybacks from liquidations, indicating potential opportunities for investors. Asian crypto stocks have also plunged, with Metaplanet leading the losses.

Crypto market experts have differing opinions on the future of the market. J. Elliot, a prominent crypto investor, believes that the crypto bubble will inevitably collapse. In contrast, Bitwise, a leading crypto asset management firm, predicts that Bitcoin ETFs could pull in over $50 billion in 2025. MicroStrategy, a business intelligence company, has raised $563 million to buy more Bitcoin.

Regulatory developments are also shaping the crypto landscape. India is reviewing its stance on cryptocurrencies, while South Korea's Bitcoin Kimchi premium has reached a three-year high. Tether, the issuer of the USDT stablecoin, has reported $13 billion in profit. Utah could become the first state to pass a Bitcoin reserve bill, while Hong Kong has omitted XRP from its approved cryptocurrencies list.

In the industry, Coinbase, a leading crypto exchange, has acquired the ads platform Spindl. UBS, a Swiss multinational investment bank, is testing blockchain technology for digital gold investments. Thailand plans to launch a new token trading platform, while stablecoins are finding 'product-market fit' in emerging markets. Uniswap, a decentralized exchange, has launched its v4 upgrade. However, RUNE, the token of the THORChain network, has hit a five-year low on bankruptcy fears.