Market Turmoil: Crypto Liquidations Hit $10 Billion as Trade War Fears Trigger Massive Sell-off

A severe cryptocurrency market downturn has triggered unprecedented liquidations, with Bybit CEO Ben Zhou revealing that actual losses may be substantially higher than reported figures. During Monday's Asian trading session, market-wide liquidations reached between $8 and $10 billion, dwarfing publicly available data.

Data Discrepancies Mask True Market Impact

Zhou highlighted significant reporting gaps across trading platforms, noting that Bybit alone recorded $2.1 billion in liquidations within 24 hours, while public data sources like Coinglass only captured $333 million. This revelation has prompted Bybit to commit to comprehensive liquidation reporting, aiming to improve market transparency.

The sell-off coincided with Bitcoin's dramatic fall below $100,000, touching $92,460 for the first time since January. The cryptocurrency market's sharp decline followed the U.S. government's announcement of increased tariffs on major trading partners, sparking concerns over global economic stability.

Trade War Escalation Rattles Crypto Markets

The market turbulence intensified as Canada, Mexico, and China promised retaliatory measures against new U.S. tariffs. This geopolitical tension triggered a broad sell-off in risk assets, with alternative cryptocurrencies suffering significant losses - XRP dropped 23%, Dogecoin fell 24.5%, and Solana declined 7.5%.

Traders' anxiety peaked as the probability of a March Federal Reserve interest rate cut diminished by over 33%. The resulting panic led to cascading liquidations, with CoinGlass data showing more than $2 billion in Bitcoin positions cleared, predominantly from optimistic long traders.

Ryan Lee, Chief Analyst at Bitget Research, emphasizes that these events demonstrate cryptocurrency markets' growing sensitivity to global economic conditions. "While Bitcoin was once considered a hedge against market volatility, recent price action shows its increasing correlation with traditional risk assets," Lee explains, advising investors to prepare for continued market volatility as geopolitical tensions persist.