Crypto Tariffs Trigger $8-10B Liquidations: Bybit CEO

Bybit CEO Ben Zhou has claimed that crypto liquidations since new US tariffs could be between $8 to $10 billion, significantly higher than the reported figures. Zhou stated that Bybit and other major exchanges limit the liquidation data that gets publicized, and real liquidations could be 4-6 times worse than reported figures.

During the 2022 FTX collapse, Zhou stated that real liquidations were 4-6 times worse than reported figures. Moving forward, he said Bybit will increase transparency about real-time liquidation data.

Bitcoin’s price dropped below $95,000 in Monday’s rout, but the entire market took hits. BTC sell-offs inspired a similar dumping action in Solana, and Ethereum also hit a YTD low.

If Zhou is correct and the tariffs liquidated up to 5x the reported amounts, this could become a very painful moment for the market.

Earlier in January, Arthur Hayes, former BitMEX CEO, predicted that BTC could drop to $70,000 in the current political climate, triggering a mini-financial crisis.

Ultimately, the crypto industry has experienced many serious bear markets. Nonetheless, it has always managed to bounce back.

Bitcoin is still worth nearly double what it was 6 months ago, and these downswings exist in the context of monumental growth. This price cycle may present a buying opportunity for long-term holders as crypto will eventually recover.