Crypto Chaos: Bybit CEO’s Shocking Liquidation Revelation! 💸😱

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Ah, the weekend! A time for relaxation, brunch, and apparently, a spectacular nosedive in the crypto market. Yes, you heard it right! Over the weekend, the crypto market decided to throw a tantrum, experiencing its largest correction in months. What was the culprit, you ask? Well, it seems the new US tariffs on Canada, Mexico, and China were the proverbial straw that broke the camel’s back. The market closed the first two days of February in a lovely shade of red, with a 21% retrace from Friday’s highs. Talk about a dramatic entrance into the month!

But wait, there’s more! This news didn’t just cause a ripple; it ignited a massive leverage liquidation worth billions. Yes, billions! Despite initial estimates being on the modest side, Bybit’s CEO, Ben Zhou, revealed that the total market’s crypto liquidation could be significantly higher than the $2 billion that was initially reported. I mean, who doesn’t love a good surprise, right? 🎉

Crypto Market Sees 21% Weekend Retrace

As February began, US President Donald Trump decided to spice things up by announcing new tariffs on his three largest trading partners: Canada, Mexico, and China. According to the report, Trump is implementing an additional 25% tariff on imports from the two neighboring countries and a 10% tariff on China’s imports. Because why not add a little more drama to the mix?

After this delightful news, the crypto market began its freefall from Friday’s highs, with Bitcoin (BTC) plummeting 12.5% over the weekend to a staggering $91,000. The rest of the market, not wanting to be left out, followed BTC’s lead. Ethereum (ETH), the second-largest cryptocurrency by market capitalization, dropped over 35% to $2,100, its lowest price since September. It’s like watching a bunch of dominoes fall, but with a lot more zeros involved!

As the fear of a global tariff war loomed, most altcoins fell to monthly lows, momentarily retracing to their pre-December breakout range. The total crypto market capitalization plunged 21% over the weekend, marking its largest correction since August 2024’s infamous “Red Monday.”

A recent report from Nansen noted that the crypto market seems to be “satiated with good news for now,” making it more “reactive to negative sentiment than positive news.” So, if you have any good news, keep it to yourself for now! 😅

The weekend market crash also prompted massive leverage liquidations, with initial reports estimating over $2 billion. This record number represents a larger single-day crash than the COVID-19 and FTX collapse. Yes, you read that right! It’s like a bad sequel that no one asked for.

CoinGlass data shows that “In the past 24 hours, 743,002 traders were liquidated, with total liquidations coming in at $2.30 billion.” Ethereum’s $637 million liquidations took the lead, proving once again that it’s not just Bitcoin that can make headlines.

Crypto Market Liquidation

Liquidations Higher Than Expected

On Monday morning, Bybit’s co-founder and CEO Ben Zhou shared some insight on the total value of the recent crypto liquidations. In an X post, Zhou stated that the “real” total number is “a lot more than $2 billion.” Because, of course, why settle for just $2 billion when you can have more? 🙄

According to his estimation, Bybit’s 24-hour liquidation was around $2.1 billion, a staggering 530% increase from the $333 million recorded in CoinGlass. Zhou explained that due to limitations in the application programming interfaces (API), CoinGlass didn’t register all the liquidations. So, it’s like a game of hide and seek, but with billions of dollars!

FYI, Bybit 24hr liquidation alone was $2.1B. As you can see in the below screenshot, Bybit 24hr liquidations recorded on CoinGlass was around $333m. However, this is not all of the liquidations. We have API limitations on how much feeds are pushed out per second.

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2025-02-04 09:13