Crypto Liquidations Surpass $237M as SVB Dust Settles

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.

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.