Cryptocurrency Traders Suffer Over $300 Million Losses In Liquidations As Bitcoin And Cryptocurrencies Crash

Cryptocurrency traders endured about $307 million in liquidation over the past 24 hours, data From Coinglass bids, cryptocurrency markets tumbled Thursday on news of the winding down of operations of crypto-friendly bank Silvergate Capital (SI).

Traders on Binance, the world’s largest cryptocurrency exchange by trading volume, saw losses of $104 million, the largest loss among exchanges, followed by losses of $79 million on OKX and $45 million on Huobi, per Coinglass.

Bitcoin (BTC) traders suffered the biggest losses, around $112 million, while liquidations of ether (ETH) topped $73 million.

Among the trading positions that were liquidated in the last 24 hours, there were about $282 million long positions, betting on higher prices. That’s bigger than this year’s highest daily long liquidation, which hit $254 million on Feb. 8, according to Konglas.

A long escalating liquidation indicates that the sudden drop in cryptocurrency prices has angered investors. BTC, the largest cryptocurrency by market capitalization, has fallen more than 6% in the past 24 hours, and earlier in the day, it reached a seven-week low of around $20,050. Popular altcoins dogecoin (DOGE) and tron ​​(TRX) led the price drop.

The latest decline came as concerns mount about the stability of Silvergate Bank, the digital asset firms’ main banking partner. After suffering huge losses and dwindling deposits, the bank announced on Wednesday evening that it would “voluntarily liquidate” its assets and close its operations.