Crypto Liquidation Event May Be Larger Than Reported, Suggests Bybit CEO

Bybit CEO Ben Zhou has expressed concerns that the recent crypto market liquidation event may be significantly larger than widely reported. This comes after data showed over $2 billion in digital liquidations in 24 hours on Monday, February 3.

Underreported Liquidations

According to Zhou, the numbers may be underreported due to API limits. Bybit, like other platforms, limits the amount of data pushed to aggregators. This capped system may result in incomplete data, leading to underestimated liquidation figures.

Zhou estimated that liquidations on Bybit alone accounted for $2.1 billion in losses, representing over 85% of the total reported figures. He believes the actual total liquidation figure could be significantly higher, potentially between $8 billion to $10 billion.

“I am afraid that today’s real total liquidation is a lot more than $2 billion. By my estimation, it should be at least $8 billion to $10 billion.”

Crypto Community Reacts

Following Zhou’s comments, the crypto community began debating the accuracy of reported liquidation figures. Some speculated that previous events, such as the COVID crash and FTX collapse, may have also been underreported.

Increased Transparency

In response to the situation, Zhou pledged that Bybit would begin sharing all liquidation data with the public. “We believe in transparency,” he stated, as digital assets reeled from a massive leverage flush.

Tips for navigating crypto market volatility:

  • Stay informed: Keep up-to-date with the latest market news and trends.
  • Diversify your portfolio: Spread your investments across different assets to minimize risk.
  • Set realistic expectations: Be prepared for market fluctuations and avoid making impulsive decisions.

Stay ahead of the curve with the latest cryptocurrency news and trends on Global Crypto News. Stay informed and make informed investment decisions in the ever-changing world of digital assets.

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