Bybit CEO Confirms- stability in the crypto market is a far cry! Liquidations reaching $10 billion

Bybit’s CEO said something that all traders must note. As per updated data from last week, the crypto market liquidated up to $10 billion. Over $2.24 billion was liquidated in the last 24 hours.  

Ben Zhou’s take 

Bybit CEO Zhou says that the volume of liquidation in the crypto market is scary. He also feels that the revolving market data could be false and that the actual figure might be 5X.  

In a candid interview, he stated that Bybit liquidated $2.1 billion on 3rd Feb.  

How Much It Could Be? 

Ben Zhou’s predictions may catch you off guard. He said that the real liquidation on 3rd Feb could be well beyond $2 billion.  

So far as I estimate, “it may be at least about $8 billion to 10 billion,” he revealed in a self-post on X.  

Liquidations Data Discrepancy? 

The crypto liquidation data is far from perfect. But what caused it? Experts say that API limitations could be in the way.  

The cryptocurrency exchange APIs could be at fault. That’s the best explanation against repeated bodies like CoinGlass reporting Bybit’s liquidation of $333 million instead of the real figure of $2.2 billion.  

The good thing is that Bybit will take charge of more clarity and transparency henceforth. Zhou said Bybit will now push the available liquidation data sets for increased transparency.  

The effect of liquidation error  

More than 7.3 million traders were affected by the crypto liquidation. The posted data says the biggest individual liquidation order was recorded by Binance for an ETH trading pair, whose value was $25.6 million. 

But activities in the trading world suggest otherwise. Some individual traders earned millions from the crypto market corrections. 

Carnage of Downfall 

Tensions are brewing in the trading community. Most experts point out that trade tensions are the reason why the crypto market is dropping.  

A recent example of global trade warfare was Donald Trump imposing a 25% additional tariff on Canadian and Mexican products and 10% on any Chinese import.  

Retaliation immediately followed with Canada starting new tariffs on US products too. Trump could now impose more restrictions against the European Union and BRICS countries.  

These events create streaks of uncertainty, evoking inflation and causing delays in interest rate cuts. No doubt investors would be nervous.  

The uncertainty affects trade in riskier assets like real estate or cryptocurrency.  

The road ahead  

A major shakeout in the form of crypto liquidation on 3rd Feb shows how market conditions could change. Experts anticipate two things.  

There could be a quick recovery as institutional investors step in. Meanwhile, liquidation could continue as it is. Till investor confidence keeps dropping, the second alternative is more likely to occur. Investors beware and make your decisions cautiously!