Today’s crypto market is in the red. On Friday, the digital asset market experienced a broad sell-off as investors became concerned about the future of crypto-friendly banks based in the United States. The total crypto market cap has dropped by 7% in the last 24 hours, losing more than $60 billion. It is now worth $930 billion.
Crypto markets welcome back the winter
Following US President Joe Biden’s latest budget and the collapse of “crypto-bank” Silvergate, Bitcoin fell below $20,000 for the first time in nearly two months. According to CoinMarketCap data, the price of Bitcoin fell to $19,945 on March 10 before recovering to hover just above $20,000 today.
Bitcoin had a stellar start to 2023 but fell as much as 5% in an hour on March 3 due to Silvergate uncertainty. Since then, the price does not appear to have been able to rise. Ethereum is down by the same amount this period and currently trades at $1,421 per coin.
According to Coinglass data, $308 million was liquidated from the Defy market in the last 24 hours. The Bitmex exchange received the single largest liquidation order of $9.49 million. Binance, on the other hand, reported a $106 million liquidation on the previous day.
At the same time, the OKX exchange followed the world’s largest exchange, reporting a $74 million liquidation. According to data, Bitcoin, the world’s largest coin, lost $120 million in the last 24 hours. ETH saw a $75 million liquidation during the same period.
Reasons the crypto market is crashing
According to reports, the market cap of សហរដ្ឋអាមេរិក stocks and digital assets has decreased by approximately $2 trillion in the last 24 hours. Silicon Valley Bank was unable to reassure its clients that their funds were secure following a massive 60% decline in its stock price.
This resulted in a massive sell-off on both trading markets, with stock market futures falling to a two-month low and Bitcoin falling below the critical $20,000 threshold. However, the failure of SVB would be the second largest in U.S. history. This could be a significant red flag for the financial markets.
In the same week, two major American banks failed. Following a customer exodus, crypto bank Silvergate went into voluntary liquidation earlier this week. Only a few days later, on March 9, Silicon Valley Bank (SVB) stock plummeted after the company announced a $1.75 billion share sale to shore up its balance sheet. Some market analysts undoubtedly foresee a digital asset doom and call on traders to quit the industry.
Source: https://www.cryptopolitan.com/crypto-markets-red-return-of-the-bear-market/