Over $1.6Bn in Crypto Liquidated as ETH Drops Below $1,500

Crypto markets collapsed Monday, wiping out over $1.6 billion in (confirmed) leveraged positions as Ethereum fell to a two-year low. The broader selloff came amid rising macro fears, with U.S. stocks officially entering bear market territory and global risk assets tumbling.

DeFi lenders bore the brunt of the slide as whales scrambled to save billion-dollar positions. “Just a few months ago, ETH below $1,500 seemed impossible,” said an analyst, adding, “this represents a generational opportunity to buy into a token and ecosystem with rock-solid fundamentals.”

One investor rushed to deposit $14 million worth of ETH into Sky to defend a $340 million loan, risking the loss of 220,000 ETH if prices fall below $1,119. Meanwhile, a separate DeFi whale saw a $106 million position liquidated following a 14% ETH price drop.

Among the hardest hit was the alleged scammer behind ZKasino, who lost $27.1 million from a 20x leveraged bet on Hyperliquid. The same wallet had previously siphoned over $40 million from the decentralized perpetuals exchange, making the wipeout a rare moment of onchain justice.

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Hong Kong Approves Regulated Crypto Staking Services

Hong Kong’s Securities and Futures Commission (SFC) approved new rules on Monday that allow licensed crypto exchanges and funds to offer staking services. This is part of Hong Kong’s “ASPIRe” initiative to support digital asset innovation while ensuring investor protections. Exchanges must retain full custody of client assets and clearly disclose all risks, fees, and lock-up periods.

The framework mandates that staking cannot be outsourced to third parties and that authorized funds can only stake via licensed platforms. The SFC’s cautious stance differs from Singapore’s retail staking ban and the U.S. SEC’s enforcement-driven approach. SFC CEO Julia Leung said the expansion of services must remain “within a regulated environment” to protect market integrity.

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Changpeng “CZ” Zhao Joins Pakistan’s Crypto Advisory Council

Binance co-founder Changpeng “CZ” Zhao has joined Pakistan’s newly launched Crypto Council as an advisor, according to Bloomberg Law on Monday. The former Binance CEO will assist Pakistani officials in shaping digital asset regulation, infrastructure, and adoption strategy. His appointment comes weeks after the council’s first meeting on March 21.

The council is part of Pakistan’s effort to attract global crypto investment amid a 45% drop in foreign direct investment. CZ’s reentry into Web3 follows his resignation and prison sentence tied to Binance’s compliance failures. Pakistan aims to become South Asia’s crypto hub, with the council led by figures like Bilal Bin Saqib and backed by the Finance Ministry.

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Metaplanet Repays 2Bn Yen Bonds Early, Stays Bullish on BTC

Japan-based Metaplanet repaid 2 billion yen ($13.5 million) in zero-interest bonds ahead of schedule on April 4, the company disclosed Monday. Issued through its Evo Fund, the bonds were used to buy more Bitcoin, as part of Metaplanet’s aggressive accumulation strategy. The company said the early redemption won’t materially impact its fiscal 2025 results.

Metaplanet now holds 4,206 BTC, placing it among the top 10 corporate Bitcoin treasuries holders globally. CEO Simon Gerovich called Bitcoin’s price volatility “a natural part” of the asset’s long-term upside in a weekend post. The firm plans to raise over $700 million to grow its Bitcoin treasury to 21,000 BTC by 2026.

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Data of the Day

Bitcoin’s hashrate hit a record 1 zettahash per second (ZH/s) on Friday, according to data from Glassnode. This milestone coincided with a 7% difficulty increase, the highest since July 2024, and follows 14 positive adjustments out of the last 17. However, hashprice (miner revenue per exahash) dropped to an all-time low of $42.40.

Analysts say the divergence between rising hashrate and falling BTC prices is triggered by reduced transaction fees and U.S. tariff-related market pressure. Trump’s April 5 tariff hike has weighed on global risk assets, including crypto. The Bitcoin network continues to adjust difficulty to maintain consistent 10-minute block times, despite miner profitability reaching new lows.

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More Breaking News

• Michael Saylor’s Strategy paused Bitcoin purchases last week despite the price dipping below $87K, disclosing a $5.91 billion unrealized loss for Q1.
• BlackRock CEO Larry Fink warned of a possible 20% market drop but still called the downturn a long-term buying opportunity while voicing concerns over BTC’s rising appeal.
• Trump’s tariff regime has thrown cold water on crypto IPOs, prompting firms like Circle and eToro to delay listing plans amid escalating economic uncertainty.
• Mantra has launched a $108 million fund to back global projects focused on real-world asset tokenization and DeFi infrastructure.
• A crypto lawyer has sued the U.S. Department of Homeland Security in an effort to uncover documents that could reveal Satoshi Nakamoto’s identity.
• Layer 2 network Base posted $193 million in Q1 trading fees and reaffirmed its goal of securing $100 billion in on-chain assets by year-end.

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