On February 3, Bebit CEO, Ben Zhou, estimated that the recent correction of the cryptography market could have triggered liquidations worth $ 10 billion, far exceeding previous estimates. According to Correglass data, more than $ 2.24 billion was liquidated from the markets in just 24 hours. However, Zhou said that this figure was probably much higher, his personal estimate putting the liquidation value between $ 8 and $ 10 billion. Bybit alone saw $ 2.1 billion in liquidations during this period, Zhou noted in a post on X.
The liquidation event has assigned more than 730,000 merchants, with the largest individual liquidation order recorded on Binance for an ETH / BTC commercial pair, worth 25.6 million dollars. Despite these significant numbers, the liquidation data reported by platforms such as Coinglass initially shown a much lower figure, only $ 333 million. Zhou explained that the difference was due to the limitations of the API on exchanges, which restrict the number of liquidation flows that they can provide at the same time. To remedy this, he announced that Bybit would begin to publish all liquidation data to improve transparency.
The time of liquidations coincided with concerns about a potential world trade war. On February 1, President Donald Trump signed an executive decree imposing import prices for goods from China, Canada and Mexico. This development has aroused fears of climbing economic tensions, some analysts suggesting that these global commercial problems have contributed to the slowdown in the market. Canada quickly retaliated with prices on American products, and there were speculations that other commercial restrictions could be introduced against the European Union and the Nations of the BRICS.
Market volatility has also coincided with a sharp drop in major cryptocurrencies like Bitcoin and Ethereum. These price reductions led to margin calls, forcing traders in long positions to liquidate, creating a chain reaction of additional liquidation through exchanges. Despite the generalized losses, some traders have made profits from the slowdown. For example, a trader would have won nearly $ 16 million by taking a position available to 50 times on Ether, by betting on his drop in prices.
The difficulties of the cryptography market are considered to be closely linked to macroeconomic factors, in particular global trade tensions and inflation problems. These problems contributed to market instability, affecting more risky assets such as cryptocurrencies. Some experts believe that continuous economic uncertainty, in particular concerning global trade, could delay interest rate reductions, further increasing inflationary pressures. These factors could continue to weigh on the cryptography market and create new short -term volatility.
