Bybit CEO Raises Concerns About Crypto Liquidations Amid New US Tariffs
Ben Zhou, the CEO of Bybit, one of the top crypto exchanges based on trading volume, has brought attention to the impact of the recent US tariffs on the cryptocurrency market. Following the disruption caused by DeepSeek, a Chinese AI protocol affecting US tech sector stocks, President Trump's tariffs on Canada and Mexico have further destabilized the market.
Initial reports suggested losses of $2 billion, but Zhou believes the actual liquidation figures are significantly higher. He estimates that the total liquidations could range between $8 to $10 billion, pointing out that Bybit alone witnessed liquidations amounting to $2.1 billion within 24 hours. While publicly available data may show lower figures, Zhou reveals that there are limitations on disclosing all liquidation information through APIs.
Addressing the aftermath of the 2022 FTX collapse, Zhou emphasized that the real liquidations were substantially underreported, possibly being 4-6 times higher than the disclosed numbers. In response to these findings, Bybit plans to enhance transparency by providing real-time data on liquidations.
The impact of the tariffs on the market has been drastic, with Bitcoin's price dipping below $95,000 and causing ripples across other cryptocurrencies like Solana and Ethereum. If Zhou's assessments are accurate and the tariffs led to liquidations far exceeding initial estimates, the repercussions could be severe for the market.
Previous predictions by industry figures, such as former BitMEX CEO Arthur Hayes suggesting a potential drop in BTC value to $70,000 amidst the current political climate, indicate ongoing challenges in the crypto space. Despite periods of downturn, the resilience of the crypto industry has been demonstrated by its ability to recover and deliver substantial growth over time.
While the market experiences fluctuations, investors may view these downturns as opportunities for long-term investment, considering the historical trend of recovery and continued growth within the cryptocurrency sector.