Ben Zhou, the CEO of Bybit, has hinted that the current liquidation event in the cryptocurrency market might be much bigger than is generally believed.
The largest liquidation event in cryptocurrency history occurred on Monday, February 3, with over $2 billion in digital liquidations in a single day, according to CoinGlass data.
The COVID disaster and the FTX collapse, two of the most major liquidation incidents ever documented, were surpassed by the estimated $2.2 billion in liquidations, according to several analysts.
However, Zhou stated that because to API limitations, the figures might be underreported. The co-founder of Bybit claims that the cryptocurrency exchange restricts the amount of data that is sent to aggregators such as CoinGlass. Zhou stated via X that other platforms probably have a comparable capped structure.
According to Zhou, liquidations on Bybit alone caused losses of $2.1 billion, or more than 85% of the total amounts that were reported. Regretfully, the actual total liquidation now is far more than $2 billion. By my judgment, it should be at least $8 billion to $10 billion,” Zhou said.
Members of the crypto community discussed the veracity of the stated numbers after Zhou's remarks. Some hypothesized that earlier liquidation incidents, such the FTX collapse and the COVID crash, might have also gone unreported.
Zhou promised that Bybit would start making all liquidation data publicly available in the future. In the midst of a large leverage flush, he declared, "We believe in transparency."
#MarketPullback #cryptowipeout #BitcoinReserveWave
