A liquidation event in the crypto market has been tremendous, with some losses perhaps reaching $10 billion, warned Bybit CEO Ben Zhou. This steep market fall has also caused anxiety over volatility, transparency, and macroeconomic factors-the key causes of many traders’ frustrations.
Massive Crypto Liquidations
CoinGlass reported liquidations of $2.24 billion in one day on Feb. 3, but according to Zhou, the real number is around $8–10 billion. It shows the complexity of liquidations across different exchanges and the inaccuracy of liquidation figures.
Liquidation figures of Bybit disputed
CoinGlass reported $333 million in liquidations for Bybit, yet the exchange reported $2.1 billion in liquidations. Zhou said the reason for the difference was API limitations, where exchanges can only push out so much data in real-time. To rectify this, Bybit will offer full liquidation data going forward for more clarity.
📉 Bybit CEO Estimates Crypto Liquidations Hit $10B
— CredShields (@CredShields) February 10, 2025
Bybit's CEO, Ben Zhou, estimates that recent market corrections triggered up to $10 billion in liquidations, exceeding earlier predictions amid rising tariffs and macroeconomic fears.
What Was the Cause of the Market Crash?
The sell-off occurred on the same day that President Donald Trump signed an executive order on Feb. 1 imposing import tariffs on China, Canada, and Mexico. Fears regarding the potential of a global trade war triggered a market-wide retreat from riskier assets, such as crypto.
Over 730,000 Traders Liquidated
More than 730,000 traders saw their positions liquidated, with the largest single liquidation on Binance, an ETH/BTC trade worth $25.6 million.Add to this some another trader shorted Ether to a tune of $16 million with 50x leverage.
Lessons for Crypto Traders
It all repeats that crypto is volatile, and leveraged trading is risk-prone. Additionally, the question arises for the exchanges to be more transparent so that actual data can be reported. The individual has to study the broad environment, which includes trade policies or regulations directly affecting crypto markets, to understand macroeconomics.
This leaves traders to watch out for what Bybit has promised: increased transparency, where future market swings will be easier to navigate.
