There was a huge wave of sales in the crypto markets. Bybit CEO Ben Zhou said that total liquidation could be much higher than official estimates. We examine the reasons behind this great collapse, where investors lost billions of dollars and the most affected.
In the crypto world Liquidations may have exceeded $ 10 billion
According to Coings data, 2.24 billion dollars were deleted from crypto markets on February 3. However, Bybit CEO Ben Zhou said that this figure could actually be much larger. Zhou said that Bybit has made $ 2.1 billion liquidation alone.
According to Zhou, official data may not fully reflect all liquidations due to API restrictions. Therefore, the actual total estimates that the total total of $ 8 billion to 10 billion dollars. This may be one of the largest liquidation events ever seen in the crypto market.
Trump’s tariffs and global trade war concern
One of the biggest reasons behind this hard collapse was the new tariffs that US President Donald Trump applied to imports from China, Canada and Mexico. While economic uncertainties in global markets have increased, investors have exited risky assets.
Bitcoin (BTC) fell to 91 thousand 500 dollars. Ethereum (ETH) and other major Altcoins experienced double -digit decreases. This great fluctuation, both individual and corporate investors are a harsh
More than 730,000 crypto trader suffered great losses
During this large collapse, more than 730,000 investors lost their position due to liquidation. The largest single liquidation process took place on the Binance Exchange. A process of 25.6 million dollars in ETH/BTC transaction pair was liquid.
On the other hand, some investors turned this collapse into an opportunity. On February 2, an investor won $ 16 million with a 50X leveled shorts position against Ethereum’s decline.
Where are the markets going?
Such large liquidation events can often be seen as a bottom signal in the market. However, global macroeconomic factors and regulatory developments will continue to determine the direction of crypto markets.
Bitcoin is expected to exceed 100,000 dollars again in the coming days, while investors continue to be cautious. Will this great collapse be an opportunity for the market or a harbinger of a bigger decline?
