Of the liquidated trading positions in the past 24 hours, some $282 million were longs, betting on higher prices. This is larger than the highest daily long liquidation of this year, recording $254 million on Feb. 8, according to Coinglass.
Soaring long liquidations suggest that cryptocurrency prices’ sudden nosedive caught investors off-guard. BTC, the largest cryptocurrency by market capitalization, has plummeted more than 6% in the past 24 hours, and earlier in the day reached its lowest level in seven weeks at around $20,050. Popular altcoins dogecoin (DOGE) and tron (TRX) have led the price decline.
The recent decline has come as concerns mounted about the stability of Silvergate Bank, a key banking partner for digital asset companies. After suffering huge losses and dwindling deposits, the bank announced Wednesday evening that it will “voluntarily liquidate” its assets and shut down operations.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.