Bybit CEO Ben Zhou Speaks Out on Crypto Market’s Record-Breaking Liquidations

Bybit CEO Ben Zhou Exposes $8-10 Billion in Crypto Liquidations: Market Chaos Unfolds

Bybit CEO Ben Zhou – In a recent tweet, Ben Zhou, CEO of cryptocurrency exchange Bybit, raised alarm over the true scale of liquidations within the crypto market. According to Zhou, the real total liquidation figure today far exceeds the reported $2B, estimating the actual number to be closer to $8-10 billion. While Bybit alone saw a liquidation of $2.1 billion within just 24 hours, Zhou pointed out that data from Coinglass showed only a fraction of the total liquidations, specifically around $333 million.

This discrepancy is due to API limitations that prevent real-time reporting of all liquidation data, a practice observed across other exchanges as well. Zhou reassured the public that Bybit plans to push all liquidation data moving forward, emphasizing the platform’s commitment to transparency.

Crypto Market Sees Historic Liquidations: Impact on Bitcoin

The latest developments in the cryptocurrency market coincide with a significant drop in Bitcoin’s price, which recently plunged to its lowest levels in months. This sharp decline has triggered a wave of liquidations across multiple exchanges, leaving traders scrambling. As Bitcoin and other major cryptocurrencies saw their prices drop dramatically, it led to massive sell-offs that created additional volatility within the market. According to Zhou’s statement, liquidations are likely underreported due to limitations on the data shared by exchanges.

Bitcoin’s Volatility: A Major Factor in Crypto Liquidations

Bitcoin, a leading indicator for the entire crypto market, has faced extreme price volatility in recent days, exacerbating the ongoing liquidation crisis. The decline in Bitcoin’s price directly impacted leveraged positions, pushing traders who used margin trading into forced liquidations. While Bybit is one of the largest crypto exchanges in terms of trading volume, this massive wave of liquidations isn’t unique to them. Other platforms like Binance and FTX also reported high liquidation rates in line with the broader market trends.

The Importance of Transparency in Crypto Markets

Zhou’s emphasis on transparency underscores a growing demand for clearer reporting in the cryptocurrency market. The lack of full transparency regarding liquidation data has been a point of contention for some time. As more traders enter the market and leverage grows, it’s crucial that platforms provide comprehensive and accurate liquidation data to better equip traders in managing their risks. Moving forward, Bybit’s commitment to disclosing all liquidation data will likely have significant implications for the industry, as other exchanges may follow suit, raising the bar for transparency.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.