Crypto liquidations surpass $237 million as SVB dust settles

Nearly 61,800 positions were liquidated in the last 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 increase after the SVB crisis

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

Now, however, the cumulative market cap of cryptocurrencies has rebounded to $1 trillion, up 8% from the previous day.

Exchange liquidations amounted to 26.47 million in the last four hours. In the previous 24 hours, 49.85 million were long trades, while 187.79 million were short liquidations, according to Coinglass.

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

The SVB dust also appears to be settling after its collapse wiped $70 billion off the market. HSBC’s announcement of the acquisition has also provided some comfort. HSBC UK Bank will have bought Silicon Valley Bank UK Limited for £1, the former announced on 13 March.

The Fed could swing

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

However, it explains that Bitcoin can only increase by 2% because of one liquidity crisis. Moreover, SVB’s weekend collapse has worked to the benefit of broader markets, according to the Kobeissi letter, especially when the technology sector is already witnessing sectoral layoffs amid a sluggish market.

That said, Goldman Sachs expects the Federal Reserve to halt policy tightening later this month. Reports show that SVB’s collapse may give a pause to interest rate increases after the central bank meeting ends on 22 March.

This is also beneficial for the revival of Bitcoin.