The cryptocurrency industry suffered tremendously as it saw a great outflow of cryptocurrencies in the past 24-hours.
The reports revealed that the outflow was due to the huge liquidations that took place in the cryptocurrency industry in a matter of less than 24-hours.
The data collected from multiple chains within the crypto-verse shows that almost $307 million worth of funds were liquidated in the said period.
Information Shared by Coinglass
A major data collection firm Coinglass has shared its findings on the liquidations. It revealed that the crypto market tanked tremendously on Thursday and it was mainly because of the Silvergate Bank’s demise.
The bank had been a huge supporter of the crypto industry reportedly faced huge financial problems. Therefore, the firm decided to deal with the situation and the only solution they could come up with was to liquidate their business.
They announced that they had shut down their operations and are going to liquidate their business. The proceeds from selling the company shares would go towards the depositors’ funds to settle the matter.
With another major firm connected with the cryptocurrency industry, winding down its business has taken a huge toll on the entire crypto industry.
The announcement was made by the Silvergate Bank on Thursday, which has caused a major pull in the entire cryptocurrency market.
The overall cryptocurrency market’s valuation plunged by $307 million due to the liquidations carried out by the investors.
The investors were concerned about the safety of their funds and investments. Most of the liquidations carried out were for the positions that were opened by the investors.
With the investors liquidating their positions, the overall market capitalization fell tremendously.
Fund Outflows by Exchange
Coinglass has also shared the liquidation data that it has recorded for every major cryptocurrency exchange.
The Binance exchange has seen $104 million outflowing from the exchange. The OKX exchange witnessed $79 million worth of funds outflowing from the platform.
The Huobi exchange also witnessed huge outflows and it has lost $45 million worth of funds from the platform.
Among all the cryptocurrency exchanges, the Binance exchange witnessed the highest outflow with respect to liquidations.
The firm has even segregated the outflows by positions. It has been revealed that in the past 24-hours, the long positions liquidated by the investors were worth $282 million.
This means that most of the investors had placed their bets on the higher prices. According to the statistics, it was more than the usual volume that was recorded for valuations in the current year.
The highest daily liquidation recorded in the year 2023 prior to the March 9 was back on February 8. Coinglass has revealed that on February 8, the volume was $254 million.
Investors were Caught Off-Guard
Coinglass has revealed that most of the investors had placed their bets on long positions, which is why the long position liquidations took place.
As the bullish trend turned to bearish all of a sudden, the investors were caught off-guard. They were not ready to take on such a situation and had no time to stabilize themselves.
With the investors getting caught up in such a situation, they did not want to take any chances and started to liquidate their positions. This caused a major plunge in the entire cryptocurrency market valuation.
Even the major cryptocurrencies witnessed huge plunges due to the recent downfall. The data shows that the market valuation of Bitcoin suffered from over 6% demise in the past 24-hours.
It is for the first time in more than a month that the trading price of BTC has fallen close to $20,050. Other tokens that have also witnessed huge plummets in their values include Tron (TRX) and Dogecoin (DOGE).
The current situation of the entire crypto market is opposite to what it had been at the beginning of 2023. As the New Year began, the entire crypto market was pumped by huge bullish sentiments.