Part 3/5:
A Closer Look at Market Dynamics
Ben, the founder and CEO of Bit, a well-known figure in cryptocurrency circles, posted on social media, expressing concerns over the magnitude of the market's liquidation. He estimated that the total liquidations on this disastrous day could well exceed $8 billion, a stark contrast to the reported figure of $2.1 billion from Bybit alone. The figures shared on Coin Glass indicated around $333 million in liquidations, but Ben hinted this was not the entirety of the situation.
Liquidation events occur when trades that are significantly losing value are automatically closed to prevent further losses, contributing to a self-perpetuating cycle of price declines and fear within the market.