"Ethereum Drowns in $8B Tariff-Linked Liquidations"

Ethereum Faces Liquidation Surge Amid Market Volatility and Geopolitical Uncertainty

Bybit CEO Ben Zhou has raised concerns about significant underreported crypto liquidations following recent US tariffs on imports from Canada and Mexico. Zhou estimates that actual liquidations could range between $8 to $10 billion, a stark contrast to lower reported figures. The market, still shaken by the repercussions of the FTX collapse in 2022, has been hit hard by the framing of these statistics.

These new tariffs, initially designed for economic measures, have inadvertently disrupted the crypto ecosystem. 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.

As Bitcoin’s value fluctuated and dipped below $95,000, the overarching impact was felt across various cryptocurrencies, including Solana and Ethereum, which also reached yearly lows.

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 amidst ongoing market volatility.

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 six months ago, suggesting that while short-term fluctuations may be alarming, long-term prospects for recovery persist.

Investors are encouraged to remain vigilant, as the current down