Crypto’s Free Fall
With ALL big projects in the sector currently in the red, the crypto markets are apparently in free fall once more. In addition to the aforementioned project, the popular and dominant cryptocurrency Bitcoin (BTC) was seen to have declined by 4.8% on the daily charts, while Ethereum (ETH) was shown to have declined by 5.0% over the same period.
Also, it was said that the worldwide market cap was at $1.07 trillion and that it had decreased 4.8% in the previous day. According to data from CoinGlass, long cryptocurrency futures worth more than $200 million were liquidated in just four hours. In under 45 minutes, $185 million of the amount was liquidated.
Additionally, the said data from CoinGlass have also indicated that BTC has allegedly faced the highest liquidations. 3.42K Bitcoins amounting to $76.38 million, were liquidated in just a 4-hour time frame. On the other hand, 26.11K Ethereum, which was allegedly worth $40.82 million, was liquidated in the same time frame.
This was then followed by Dogecoin, with $4.55 million worth of liquidations. Litecoin comes fourth on the trend with $4.44 million worth of liquidations. Bitcoin was reportedly trading at $22,358.25, a 0.1% decrease in the last hour. Ethereum, on the other hand, was trading at $1,566.54, up 0.2% in the last hour.
The Alleged Reason Behind the Crash
The aforementioned liquidation, which exposed the recent market fall, took place as a result of Silvergate, a bank that supports cryptocurrencies, raising concerns about whether it could continue to operate. The aforementioned bank has additionally postponed filing with the SEC. The ensuing FUD led to a more than 50% decline in the stock price of the bank.
As Silvergate disclosed a $1 billion net loss in the final quarter of 2022, rumors of the company’s financial troubles first surfaced. the period when FTX, a bitcoin exchange, unexpectedly collapsed. The US Department of Justice then started looking into the precise transactions between Silvergate and FTX in light of this. Yet, no allegations of misbehavior have been made as of yet.