The recent downturn in the cryptocurrency market may have resulted in liquidations amounting to as much as $10 billion, according to Ben Zhou, the co-founder and CEO of Bybit exchange. This figure significantly surpasses previous estimates, highlighting the substantial impact of the market correction. Bybit alone reported liquidations of $2.1 billion in a single 24-hour period, contributing to this staggering total. CoinGlass data further supports this with reports of $2.24 billion in liquidations across the crypto markets on February 3.
Zhou expressed concerns, suggesting that the actual total might range between $8 billion and $10 billion, a figure that underscores the scale of the financial upheaval. This massive liquidation event has been attributed to mounting macroeconomic tensions, particularly in light of potential global trade disputes. These concerns have been exacerbated by actions from the U.S. government, with President Donald Trump recently signing an executive order that levies import tariffs on goods from countries such as China, Canada, and Mexico.
The crypto market’s reaction to these developments has been marked, with significant fluctuations and large-scale liquidations reflecting broader economic unpredictability. As the situation continues to unfold, investors remain watchful, assessing the potential long-term impacts of these macroeconomic challenges on the cryptocurrency landscape.
