Crypto Liquidations May Surge to $8-10 Billion Post-Tariffs: Bybit CEO

Bybit CEO Ben Zhou Suggests Crypto Liquidations Post-Tariffs May Reach $8-10 Billion, Exceeding Current Estimates

Bybit CEO Ben Zhou has raised concerns about the potential impact of recent US tariffs on the crypto market, suggesting that crypto liquidations could reach $8-10 billion, surpassing current estimates. Zhou emphasized that the actual liquidation figures are significantly higher than reported, largely due to data limitations imposed by major exchanges, including Bybit.

Zhou stated, “During the 2022 FTX collapse, recorded liquidations were 4-6 times worse than publicized,” illustrating a trend of underreporting in the volatile crypto market. This warning comes as the crypto market grapples with extreme volatility triggered by recent US tariffs on imports from Canada and Mexico.

Zhou elaborated on how the crypto industry experienced losses estimated at $2 billion, although he firmly believes that such numbers grossly understate the reality of the situation:

“I am afraid that today real total liquidation is a lot more than $2 billion; by my estimation it should be at least around $8-10 billion. FYI, Bybit 24-hour liquidation alone was $2.1 billion,” Zhou stated, emphasizing the need for transparency in reporting.

Zhou’s opinion on the tariffs is especially relevant because Bybit was heavily entangled with FTX. Zhou was asked how the reported liquidations from the FTX collapse compared to the real number as a baseline. He stated that real liquidations were “at least” 4-6 times worse. Moving forward, Zhou said Bybit would be more transparent with liquidation data.

Reflecting on past experiences, Zhou draws parallels to the devastating impacts of the 2022 FTX collapse, which exposed significant discrepancies in reported and actual liquidation figures. During that tumultuous period, reported liquidations were grossly underrepresented, signaling to investors that the crypto space is subject to substantial misreporting:

“The real liquidations during the FTX collapse were at least 4-6 times worse,” Zhou noted. These revelations underscore a critical issue in the crypto reporting framework—one that many stakeholders believe needs to be addressed urgently for the sake of overall market stability.