Nearly 61,800 positions were liquidated in the past 24 hours, surpassing $237 million in total crypto liquidations.
According to trading and information platform Coinglass, Binance executed the largest single liquidation order at $7.42 million.
Crypto market gains after SVB crisis
The market briefly experienced panic after the cryptocurrency company revealed links to the now-defunct Silicon Valley bank. Meanwhile, out of concern for systemic risk, the Federal Reserve has shut down Signature Bank, with top players including Coinbase disclosing exposure to the crypto-focused bank.
Now, however, the cumulative market capitalization of cryptocurrencies is back up to $1 trillion, registering an 8% increase from the previous day.
Exchange liquidations in the last four hours totaled 26.47 million. According to Coinglass, over the last 24-hours, there were 49.85 million long trades, while 187.79 million were short liquidated.
Around 418 BTC worth $9.20 million were liquidated, while $7.51 million worth of Ethereum was liquidated. The recovery has boosted the price of bitcoin by more than 9%, bringing it back above $22,000.
The dust on SVB also begins to settle after its collapse wiped $70 billion off the market. The announcement of the acquisition of HSBC has also brought some relief. HSBC UK bank is reportedly acquiring Silicon Valley Bank UK Ltd for £1, the former said on 13 March.
Fed may pivot
Kobeissi Letter, an industry-leading commentary on global capital markets, believes that the collapse of SVB is good news for BTC. In theory, according to the commentator, the fractional reserve problem is solved by bitcoin.
However, it suggests that bitcoin may only go up by 2% because of liquidity crunch, Furthermore, the weekend collapse of SVB has worked in favor of the broader markets, according to the Kobeissi paper, especially as the tech sector is already seeing sectoral layoffs amid a slowing market.
That said, Goldman Sachs anticipates that the Federal Reserve will kick off its policy-tightening exercise later this month. The SVB collapse could lead to a pause in interest rate hikes after the central bank’s meeting ends on March 22, the report said.
It is also beneficial for the revival of bitcoin.
disclaimer
BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.