The Silvergate Catastrophe Hindered The Market Recovery

Due to issues with the US crypto payment network Silvergate, the worldwide market for digital assets experienced a decline on March 3. Market cap overall dropped by more than 4% to $1.03 trillion. Yet, as investors hurried to relocate their money, the 24-hour trading volume increased by 21% to $55.4 billion.

Data from CoinGlass shows that more than 84,000 investors have sold more than $251 million in the previous 24 hours. The greatest liquidation order, $4.16 million, was noted by the audience and occurred on the OKX cryptocurrency market. The liquidation of crypto futures totaled roughly $200 million in under 4 hours and $185 million in a little under 45 minutes.

Silvergate Affected the Market Tremendously

The largest digital asset in the world, Bitcoin (BTC), fell to its lowest point in almost two weeks as a result of recent pressures on the cryptocurrency market. Over the past 24 hours, the price of bitcoin has decreased by almost 4%. In the previous 24 hours, there has been approximately $83 million worth of Bitcoin liquidations, bringing the average price of BTC to $22,399 per coin.

A bank that supported cryptocurrencies, Silvergate Capital Corporation, had issues before the most recent cryptocurrency meltdown. According to reports, the number of stablecoin and digital asset exchanges has declined to start transactions through Silvergate.

The latest crypto meltdown, which resulted in a significant liquidation, was caused by a number of factors, though. The US Securities and Exchange Commission (SEC) first cautioned investors that cryptocurrency exchanges were not secure before Coinbase terminated Silvergate payments. Subsequently, Crypto.com chose to halt payments to Silvergate.

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