Bybit CEO Estimates Crypto Liquidations Far Exceed Reported Figures

During the early hours of Asian trading on Monday, crypto traders faced a brutal sell-off, triggering liquidations estimated between $8 and $10 billion.

Bybit CEO Ben Zhou noted that data limitations obscure the full scale of the event, with some platforms reflecting only a fraction of the true losses.

I am afraid that today real total liquidation is a lot more than $2B, by my estimation it should be at least around $8-10b. FYI, Bybit 24hr liquidation alone was $2.1B, As you can see in below screenshot, Bybit 24hr liquidations recorded on Coinglass was around $333m, however,… https://t.co/4WLkPxTYF4 pic.twitter.com/woTOHQvNkt

— Ben Zhou (@benbybit) February 3, 2025

According to Zhou, Bybit alone experienced $2.1 billion in 24-hour liquidations, while Coinglass data only reflected $333 million due to data feed restrictions. This discrepancy highlights the challenges in accurately reporting liquidation figures across platforms.

Moving forward, Bybit has committed to pushing all liquidation data for greater transparency.

Concurrently, Bitcoin’s price plummeted below $100,000 for the first time since early January, briefly reaching a low of $92,460.

Impact of Trade War on Crypto Market Liquidations

The sell-off was triggered by broader market fears, exacerbated by the U.S. imposing high tariffs on three key trade partners.

The announcement heightened economic uncertainty, making risk assets like cryptocurrencies less attractive as investors turned to safer alternatives.

The new tariffs fueled concerns over rising inflation, which has already been a significant obstacle for the crypto market.

Investors reacted by reducing exposure to volatile assets, leading to substantial crypto market liquidations and sending Bitcoin and altcoins sharply lower.

The probability of an interest rate cut following the March FOMC meeting dropped by more than 33%, further weighing on sentiment.

Altcoins also suffered losses, with XRP dropping 23%, Solana falling 7.5%, and Dogecoin plunging 24.5%.

Consequently, many traders, fearing continued downside, exited their positions, leading to further liquidation waves.

CoinGlass data revealed that over $2 billion in Bitcoin liquidations occurred immediately following the tariff news.

Around $1.83 billion of these liquidations came from long positions, highlighting how bullish traders were caught off guard by the abrupt downturn, reinforcing the crypto market’s vulnerability to macroeconomic shocks.

Analyst Insights on Crypto Market Volatility

Ryan Lee, Chief Analyst at Bitget Research, said in a research note that retaliatory measures promised by Canada, Mexico, and China have further heightened investor anxiety, prompting a shift away from riskier assets, including cryptocurrencies.

“While Bitcoin has historically been viewed as a hedge against traditional market volatility, its recent performance highlights increasing sensitivity to global economic events,” notes Lee.

“The current reaction underscores how geopolitical tensions and policy decisions are increasingly shaping cryptocurrency market dynamics. As these developments continue to unfold, investors should remain vigilant, as ongoing geopolitical and macroeconomic shifts are likely to influence crypto valuations in the near term,” adds Lee.