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Bybit CEO claims crypto liquidations far exceed reported figures—how bad was it?

by admin February 4, 2025
February 4, 2025
Bybit CEO claims crypto liquidations far exceed reported figures—how bad was it?

Crypto markets experienced a brutal sell-off on Monday, wiping out billions in liquidations. Bybit CEO Ben Zhou claims the scale of forced liquidations is much larger than what is being publicly reported.

Zhou argues that data discrepancies across platforms prevent a full picture from emerging, leaving traders unaware of the true depth of risk.

Ben Zhou

@benbybit

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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,…

6:05 pm · 3 Feb 2025

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Bybit alone recorded $2.1 billion in liquidations, while industry trackers like Coinglass reflected just $333 million.

The sell-off comes at a time of heightened global uncertainty, with US trade policies, inflation concerns, and shifting investor sentiment contributing to increased volatility.

According to data from Coinglass, over 746,000 traders were liquidated as the market saw a sharp downturn.

Total liquidations, including both long and short positions, reached $2.27 billion. The largest single liquidation order occurred on Binance for an ETH/BTC trade valued at $25.64 million.

Market turmoil drives mass liquidations, but how accurate are the figures?

The latest crypto market crash was driven by a combination of macroeconomic shocks, including new US tariffs on China, Mexico, and Canada.

As investors reacted to the economic uncertainty, cryptocurrencies faced heavy selling pressure. Bitcoin briefly dropped to $92,460 before recovering slightly, while altcoins suffered double-digit losses.

According to Coinglass, total liquidations stood at $2 billion, but Bybit CEO Ben Zhou asserts that the actual figure is much higher. Bybit alone recorded $2.1 billion in liquidations in just 24 hours, highlighting the severe impact on leveraged traders.

This discrepancy stems from the way different platforms report data. Many liquidation figures rely on aggregated data feeds, which may exclude transactions from some exchanges or fail to update in real-time.

The divergence in reported figures raises concerns about whether market participants have a complete picture of risk exposure.

If traders are operating under the assumption that liquidations are far lower than they actually are, it could lead to miscalculations in risk management strategies.

Altcoin losses expose crypto market vulnerability

Altcoins bore the brunt of Monday’s sell-off, with XRP tumbling 23%, Solana falling 7.5%, and Dogecoin losing 24.5%.

Bitcoin liquidations alone surpassed $2 billion, with $1.83 billion wiped from long positions, showing how overleveraged traders were caught off guard.

Market analysts warn that growing geopolitical and macroeconomic instability could continue to impact crypto prices.

Cryptocurrencies have often been viewed as a hedge against traditional financial market volatility, but recent trends suggest that external economic pressures now weigh more heavily on digital assets.

With institutional investors playing a larger role in crypto markets, their risk-off approach to economic downturns is likely to increase volatility.

The liquidation discrepancies also point to a larger issue—if reported figures are significantly lower than actual losses, it suggests that transparency in the crypto market remains a work in progress.

Traders relying on public data to make investment decisions may be underestimating the risks, leaving them vulnerable to unexpected shocks.

The post Bybit CEO claims crypto liquidations far exceed reported figures—how bad was it? appeared first on Invezz

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