The crypto market has witnessed one of the most severe liquidation events in its history. Bybit CEO Ben Zhou suggests that the real liquidation figures could be far higher than initial estimates, with billions of dollars wiped out. Let’s take a closer look at the reasons behind this crash and the most affected traders.
Liquidations May Have Exceeded $10 Billion
According to CoinGlass data, on February 3rd, a total of $2.24 billion was liquidated from the crypto market. However, Bybit CEO Ben Zhou argues that the actual figure could be significantly higher. Zhou revealed that Bybit alone accounted for $2.1 billion in liquidations.
Due to API limitations, official data might not fully capture the extent of liquidations. Zhou estimates that the real total could be between $8 billion and $10 billion, making this one of the largest liquidation events in crypto history.
Trump’s Tariffs and Global Trade War Fears
A major factor behind this sharp crash was the announcement of new tariffs by U.S. President Donald Trump on imports from China, Canada, and Mexico. As economic uncertainties escalated, investors started pulling out of risky assets.
As a result, Bitcoin (BTC) dropped to $91,500, while Ethereum (ETH) and other major altcoins saw double-digit declines. The extreme volatility impacted both retail and institutional investors, leading to massive losses.
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730,000+ Crypto Traders Faced Major Losses
Over 730,000 traders were liquidated during this massive sell-off. The largest single liquidation transaction occurred on Binance, where a $25.6 million ETH/BTC trade was liquidated.
Despite the turmoil, some investors managed to turn the crash into an opportunity. On February 2nd, one trader made $16 million by shorting Ethereum with 50x leverage, betting on the price decline.
What’s Next for the Market?
Massive liquidation events like this are often seen as potential bottom signals for the market. However, global macroeconomic factors and regulatory developments will continue to shape the future direction of the crypto market.
In the coming days, analysts expect Bitcoin to attempt a recovery above $100,000, while investors remain cautious. Will this crash turn into a buying opportunity, or is a deeper correction still on the horizon? Stay updated with The Bit Journal for the latest market insights.
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The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
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