The crypto market crash: over $20 billion liquidated overnight

The cryptocurrency market has just experienced a true storm, with more than $20 billion in leveraged positions liquidated in a single night. This flash crash swept through major trading platforms, causing colossal losses and widespread panic among investors.

The event was triggered by the sudden announcement of new trade tensions between the United States and China, following Donald Trump’s decision to impose massive tariffs on key strategic products. This geopolitical shock sparked a global sell-off, and crypto markets were not spared.

Platforms such as Hyperliquid, Bybit, and Binance were among the hardest hit, recording roughly $10 billion, $4.5 billion, and $2.4 billion in liquidations respectively. More than 1.7 million traders saw their positions wiped out, mostly long positions. On Hyperliquid, a massive ETH-USDT trade worth $200 million was reportedly liquidated.

Bitcoin dropped more than 15%, briefly falling below $105,000, while altcoins were hit even harder: LINK and DOGE lost up to 60%, ONDO nearly 70%, and HYPE more than 50%. In just a few hours, over $400 billion in altcoin market capitalization evaporated.

Some observers already suspect insider trading, after detecting major transactions on certain exchanges just minutes before the crash. One trader is said to have profited as much as $200 million by anticipating the fall.

This “nightmare night” highlights the fragility of crypto markets when exposed to leverage and investor panic. The markets remain extremely volatile, where a single political announcement can trigger a global collapse.

Lagarde: “Bitcoin has no intrinsic value”

Christine Lagarde, president of the European Central Bank, reignited debate by stating that Bitcoin has “no underlying value.” According to her, crypto is primarily a speculative asset detached from the fundamentals of true currency.

This stance aligns with the traditional view of central banks, which refuse to recognize Bitcoin as money as long as its use remains limited and volatility high. For now, it’s seen as a potential store of value by some — but without the guarantees that fiat currencies provide.

Crypto supporters quickly criticized her comments, arguing that an asset’s value doesn’t depend solely on physical backing, but also on scarcity, community trust, and its utility as a medium of exchange or store of value outside government-controlled systems.

This highlights a paradox: modern fiat currencies themselves have no intrinsic value. Their worth rests on trust in the state, its stability, and its capacity to maintain a functioning monetary system. Lagarde’s remarks thus invite reflection on what “value” truly means in the digital age.

Her speech is both political and symbolic. It reflects institutional anxiety over the rise of decentralized assets and the desire to preserve monetary control — but it may also fuel a broader philosophical debate about how we define money in the 21st century.

United States: bill proposes tax exemption for small bitcoin payments

U.S. Senator Cynthia Lummis has introduced a bold proposal to exempt small Bitcoin transactions from capital gains taxes. The bill, already under Senate discussion, could be a decisive step toward adopting BTC as a daily payment method rather than just a speculative asset.

The proposal introduces a “de minimis” exemption: any personal Bitcoin transaction generating a gain under $300 would be tax-free, up to $5,000 per year. Practically, it would allow users to make everyday purchases without calculating or declaring a capital gain each time.

Currently, every Bitcoin payment is treated as a taxable event by the IRS, making everyday use cumbersome. Lummis’s bill seeks to remove this bureaucratic barrier and restore Bitcoin’s original monetary function.

The senator also proposes reforming the taxation of staking and mining income — taxing only at the time of sale rather than when rewards are generated — a more logical and investor-friendly approach for long-term holders.

This initiative is part of ongoing Congressional efforts to clarify crypto taxation. If adopted, it could transform Americans’ relationship with Bitcoin by simplifying use and paving the way for BTC’s recognition as a legitimate medium of exchange.

MetaMask integrates perpetual trading

MetaMask has taken another step forward by integrating perpetual cryptocurrency trading directly into its interface. With this upgrade, users can now open and manage leveraged positions without leaving their wallet — bringing advanced trading features into the non-custodial world.

The tool offers two modes: a “Simple” mode for beginners, featuring key settings like leverage and position size, and a “Pro” mode for experienced traders, including order books, limit and hidden orders, and advanced risk management tools.

MetaMask partnered with an external specialized infrastructure for perpetual trade execution, ensuring speed, liquidity, and security. Users can deposit assets such as SOL, ETH, or BTC, which are converted into USDC for trading, while retaining full control of their private keys.

This initiative reflects MetaMask’s ambition to become an all-in-one Web3 application — wallet, dApp browser, NFT marketplace, and now derivatives trading hub. The goal is a frictionless experience bridging fund management and market access.

At launch, the feature will be available only in select jurisdictions, with expansion planned as regulatory conditions evolve. MetaMask aims for global coverage of its user base over time.