Crypto liquidations estimated at $10 billion
The recent downturn in the cryptocurrency market may have led to liquidations totaling up to $10 billion, reaching over earlier estimates, according to Bybit CEO Ben Zhou.
On February 3, over $2.24 billion was liquidated from the crypto markets within just 24 hours, as reported by CoinGlass.
“Bybit’s 24hr liquidation alone was $2.1 billion,” Zhou stated in a post, and he estimated that the total liquidations could be between $8 billion and $10 billion.
This significant liquidation event occurred amid rising macroeconomic concerns following President Donald Trump’s announcement of new tariffs on goods from China, Canada, and Mexico.
These tariffs have sparked fears of a potential global trade war, which has negatively impacted investor sentiment across various markets.
Zhou explained that discrepancies in liquidation figures are likely due to limitations in the application programming interfaces (API) of cryptocurrency exchanges.
He noted that CoinGlass reported Bybit’s liquidations at only $333 million instead of the actual figure of $2.1 billion.
To enhance transparency, Zhou indicated that Bybit plans to improve its data-sharing practices moving forward.
The liquidation event affected over 730,000 traders, with the largest single liquidation order recorded on Binance for an ETH/BTC trading pair valued at $25.6 million.
While many traders faced losses, some capitalised on the market correction; one trader reportedly made nearly $16 million on a 50x leveraged short position betting on Ether’s price decline.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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