Key Points
- Bybit CEO Ben Zhou suggests the recent crypto market liquidation could be larger than reported.
- Zhou estimates the total liquidation could be between $8 billion to $10 billion.
Ben Zhou, the CEO of Bybit, has proposed that the recent cryptocurrency market liquidation may be much larger than what is commonly reported.
Data from CoinGlass reveals that on Monday, February 3, there was over $2 billion in digital liquidations within a 24-hour period. This event marks the most significant liquidation event in the history of cryptocurrency.
Analysts’ Estimates
Several market analysts have estimated that the liquidations surpassed $2.2 billion. This figure exceeds the liquidations during the COVID crash and FTX collapse, which are two of the most substantial liquidation events ever recorded.
However, Zhou suggests these figures may be underreported due to API limits. According to Zhou, the cryptocurrency exchange Bybit limits the amount of data it sends to data aggregators like CoinGlass. Zhou believes other platforms probably employ a similar system.
Estimated Liquidations
Zhou estimates that liquidations on Bybit alone amounted to $2.1 billion in losses. This figure represents over 85% of the total reported figures. He fears that the real total liquidation is much higher than $2 billion, estimating it to be at least $8 billion to $10 billion.
Following Zhou’s remarks, there has been a debate in the cryptocurrency community about the accuracy of the reported figures. Some members have speculated that previous liquidation events, such as the COVID crash and the FTX collapse, might have also been underreported.
Moving forward, Zhou has committed to sharing all liquidation data with the public. He stated, “We believe in transparency,” as digital assets suffered from a significant leverage flush.