According to Bybit’s chief executive officer, a recent correction in the cryptocurrency market may have caused capital liquidation of up to $10 billion, which is an indicator exceeding previous estimates.
CoinGlass data shows that in the 24 hours on Monday, February 3, more than $2.24 billion was liquidated from the crypto markets.
Bybit co-founder and chief executive officer Ben Zhou also noted that a real figure could be five times larger than the specified reading. He expressed concerns that the real total liquidation that took place on Monday could well exceed $2 billion. According to his estimate, the corresponding figure should be at least about $8 billion – $10 billion.
The multibillion-dollar cryptocurrency liquidation was recorded amid growing macroeconomic concerns about a potential global trade war after United States President Donald Trump signed an executive order on tariffs on goods imported from Mexico, Canada, and China.
According to media reports, the differences in cryptocurrency liquidation indicators were probably caused by limitations in the application programming interfaces (API) of the cryptocurrency exchanges. Against this background, platforms such as CoinGlass report Bybit’s liquidations at $333 million instead of the actual $2.1 billion figure. This was stated by Ben Zhou. According to him, Bybit has an API limitation on how many feeds are pushed out per second. He noted that other exchanges also use similar practices to limit liquidation data.
Ben Zhou stated that in the future Bybit will start to push all liquidation data. In this context, he noted that his company believes in transparency.
The media reported that more than 730,00 traders were caught in a multibillion-dollar cryptocurrency liquidation.
CoinGlass data indicates that the largest single order for the liquidation of the ETH/BTC trading pair valued at $25.6 million was recorded on the Binance crypto exchange.
At the same time, some traders were able to monetize the circumstances of the current moment and made millions from the present correction of the cryptocurrency market.
The media published information about a certain savvy trader who earned almost $16 million on his short position with 5x leverage, which was effectively betting on Ether’s ETH price decline.
As we have reported earlier, Stablecoin Market Cap Reaches All-Time-High of Over $200B.
