Bitcoin Plummets to 7-Week Low, Crypto Market Loses $70 Billion in Market Cap
The fallout from Silvergate Bank's shutdown continues to haunt the crypto market, leading to a sharp drop in Bitcoin's price.
Top Crypto Price Movements at 08:35 AM on March 10, 2023. Source: Coin360
In the late hours of March 9 and the early hours of March 10, the cryptocurrency market experienced a severe correction, with the total market capitalization plummeting from $1 trillion to just $933 billion within 12 hours.
This decline is attributed to the recent announcement by Silvergate Bank, a key partner for processing USD transactions for many major crypto companies in the US, that it will cease operations. Investors are concerned that Silvergate's troubles could trigger a new crisis in the crypto market. Even positive news about Mt. Gox delaying its BTC repayments to creditors was insufficient to prop up prices.
Details: Silvergate Bank "Voluntarily Liquidates Assets"
At the time of writing, Bitcoin has dropped by 8.6% from the previous day, falling to $19,776. This represents the lowest BTC price in 7 weeks and marks the first time since mid-January that the world’s largest cryptocurrency has fallen below the critical psychological level of $20,000.
1-hour Chart of BTC/USDT on Binance at 08:30 AM on March 10, 2023
Ethereum also experienced a steep decline, plunging from $1,500 to $1,408 in just one hour, hitting its lowest price since mid-January. The ETH sell-off was further exacerbated by news that New York regulators are classifying Ethereum as a security.
1-hour Chart of ETH/USDT on Binance at 08:30 AM on March 10, 2023
Top altcoins with large market caps are also seeing corrections between 5% and 10%, with red dominating the rankings.
The total value of derivative liquidations over the past 12 hours has reached $290 million, primarily affecting BTC and ETH. Additionally, long positions account for 91% of the liquidations.
Value of Cryptocurrency Liquidations in the Past 12 Hours, Data from Coinglass at 08:30 AM on March 10, 2023
