See More

Crypto Short Sellers Get Liquidated En Masse in Surprise Market Turnaround

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Almost 61,800 crypto positions were liquidated in the past 24 hours, surpassing $237 million in value.
  • Coinglass noted the largest single liquidation order was executed on Binance for $7.42 million.
  • Goldman Sachs anticipates that the Federal Reserve will halt its policy tightening.
  • promo

Almost 61,800 positions were liquidated in the past 24 hours, surpassing $237 million in total crypto liquidations.

Binance executed the largest single liquidation order for $7.42 million, according to trading and information platform Coinglass.

Crypto Markets Gain After SVB Crisis

After cryptocurrency companies disclosed exposure to the now-defunct Silicon Valley Bank, the market briefly experienced panic. Meanwhile, out of concern for the systemic risk, the Federal Reserve has closed Signature Bank, with top players, including Coinbase, revealing exposure to the crypto-focused bank. 

Now, however, the cumulative market value of cryptocurrencies has resurrected back to $1 trillion, recording an 8% rise from the previous day.

Exchange liquidations totaled 26.47 million in the last four hours. Over the previous 24 hours,49.85 million were long trades, while 187.79 million were short liquidation, as per Coinglass.

Total liquidations chart by Coinglass
Total Crypto Liquidations Chart by Coinglass

Around 418 BTC were liquidated for $9.20 million, while $7.51 million worth of Ethereum was liquidated. The recovery has increased the price of Bitcoin by over 9%, bringing it back above $22,000.

The SVB dust also seems to be settling after its collapse led to a $70 billion wipe-out from the market. HSBC’s announcement of its acquisition has also brought some solace. HSBC UK Bank is reportedly acquiring Silicon Valley Bank UK Limited for £1, the former stated on March 13.

Fed Could Pivot

Kobeissi Letter, an industry-leading commentary on the global capital market, believes that the SVB collapse is good news for BTC. In theory, according to the commentator, the fractional reserve problem is resolved by Bitcoin.

However, it explains that Bitcoin can only increase by 2% due to a liquidity crisis. Moreover, SVB’s weekend collapse has worked in favor of broader markets, as per the Kobeissi letter, especially when the tech sector is already witnessing sector-wise layoffs amid a slow market.

That said, Goldman Sachs anticipates that the Federal Reserve will halt its policy tightening exercise later this month. Reports note that SVB collapse could give a break to interest rate hikes after the central bank meeting ends on March 22.

This is also beneficial for the revival of Bitcoin.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

shraddha_sharma.jpg
Shraddha Sharma
Shraddha is an India-based journalist who worked in business and financial news before diving into the crypto space. As an investment enthusiast, she has also has a keen interest in understanding crypto from a personal finance standpoint.
READ FULL BIO
Sponsored
Sponsored