"Bybit CEO Warns: New Tariffs Could Trigger $8-10B Crypto Liquidations"

Bybit CEO Ben Zhou has raised concerns about the potential impact of new US tariffs on the crypto market, suggesting that liquidations could reach between $8 to $10 billion, exceeding current estimates. Zhou, who is the CEO of the second-largest crypto exchange by trading volume, made these claims in light of the recent DeepSeek incident, which damaged US tech sector stocks and weakened the market.

Zhou stated that the market was already fragile due to the DeepSeek incident, and the new tariffs on Canada and Mexico have exacerbated the situation. He believes that the reported losses of $2 billion are just the tip of the iceberg, and the actual liquidations could be at least around $8-10 billion. Zhou cited Bybit's 24-hour liquidation alone, which was $2.1 billion, as evidence of the significant impact of the tariffs.

Zhou's comments come as the crypto market continues to grapple with the aftermath of the FTX collapse. He was asked how the reported liquidations from the FTX collapse compared to the real number as a baseline. Zhou stated that real liquidations were "at least" 4-6 times worse than reported figures. Moving forward, Zhou said Bybit would be more transparent with 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's estimates are correct, the tariffs could have a significant impact on the crypto market, potentially leading to a very painful moment for investors.

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. While the crypto industry has experienced many serious bear markets, 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.