Bitcoin Crashes to $21,971, Crypto Market Takes a Hit Amid Silvergate Fears
Bitcoin Crashes to $21,971, Crypto Market Takes a Hit Amid Silvergate Fears
On the morning of March 3, Bitcoin experienced a sharp decline, plunging from $23,400 to $21,971 before bouncing back to around $22,400.
While the exact cause of the latest market adjustment remains unclear, it is likely linked to concerns surrounding Silvergate Bank. This US bank has been a key gateway for USD deposits for several major American crypto companies. Silvergate has recently missed a deadline to file a report with the SEC, raising fears about the bank’s prospects following significant impacts from the FTX and Genesis collapses.
Details: Crypto "Liquidity Crisis" Hits Silvergate Bank
Since last night, several major US crypto players, including Coinbase, Galaxy Investment Partners, stablecoin issuer Circle, Paxos, and MicroStrategy, have either severed ties or confirmed no relationship with Silvergate Bank.
1-hour chart of BTC/USDT on Binance as of 09:00 AM, March 3, 2023
Ethereum (ETH) has also seen a significant drop, losing up to 6% and falling to $1,544.
1-hour chart of ETH/USDT on Binance as of 09:00 AM, March 3, 2023
Similarly to BTC, large-cap altcoins have dropped between 4-8% compared to 24 hours ago.
In the past hour alone, over $200 million in derivatives positions have been liquidated, representing the majority of liquidations in 4-hour, 12-hour, and 24-hour timeframes. This indicates a massive liquidation effect during the dump, leaving many investors unable to react in time. Among the liquidated positions, long positions accounted for over 98%.
Liquidation value in the past 4 hours, data from Coinglass as of 09:00 AM, March 3, 2023
