Ben Zhou, CEO of Bybit, has raised concerns about the scale of crypto liquidations following the implementation of new US tariffs. He estimates these liquidations could range between $8 to $10 billion, significantly exceeding publicly reported figures.
During the 2022 collapse of FTX, Zhou highlighted that actual liquidations were four to six times higher than what was initially disclosed. He has committed to increasing Bybit's transparency in releasing real-time liquidation data.
Ben Zhou, leading Bybit—a major player in the crypto exchange landscape—recently voiced significant concerns. The market, already weakened by DeepSeek's influence on US tech stocks, has been further destabilized. This comes after President Trump's tariffs on Canada and Mexico, which have precipitated a substantial decline in the crypto market.
Zhou suggests that actual losses have far exceeded the reported $2 billion, estimating real total liquidations to be between $8 and $10 billion. "Bybit's 24-hour liquidation report was $2.1 billion," he noted, "while Coinglass recorded only $333 million due to API feed limitations." His insights are particularly critical given Bybit's previous involvement with FTX. Zhou shared that the liquidation figures from the FTX incident were substantially underreported, being at least four to six times higher than stated. Moving ahead, Bybit intends to enhance transparency concerning liquidation metrics.
Following these events, Bitcoin's price plummeted below $95,000 amid broad market declines, triggering similar sell-offs in Solana and Ethereum. If Zhou's estimates are accurate, the tariffs might have intensified market challenges far beyond initially reported levels.
In January, Arthur Hayes, former CEO of BitMEX, warned of Bitcoin potentially falling to $70,000 within the current political framework, hinting at a potential mini-financial crisis. Despite the volatility, the crypto sector has historically rebounded from downturns. With Bitcoin valued nearly double its price from six months ago, such fluctuations might offer buying opportunities for long-term investors, as the market is expected to recover over time.