• Crypto volatility skyrocketed this weekend due to the collapse of Silicon Valley Bank (SVB) and Silvergate.
• This resulted in $791 million of liquidations over four days, with $383 million longs liquidated in a 48 hour period alone.
• Late Sunday, news that deposits will be made whole at SVB propelled the market upwards with $150 million of shorts sellers liquidated as Bitcoin retook $22,000.
Crypto Volatility Rises Following Collapse of SVB and Silvergate
The crypto markets were rocked this weekend by the collapse of US banking giants Silicon Valley Bank (SVB) and Silvergate. This caused crypto volatility to increase dramatically with investors experiencing large losses due to liquidations.
$791 Million Liquidations Over Four Days
In total, there were $791 million of liquidations over the course of four days. Of this figure, an eye-watering $383 million were longs that were liquidated during a 48 hour period alone – making it the largest 48 hour number of liquidations this year so far.
Bitcoin Retakes $22,000 After News Deposits Made Whole at SVB
Late on Sunday however, news came out that deposits would be made whole at SVB, causing a surge in prices across all cryptos. This saw Bitcoin retake its position above the important level of $22,000 as well as resulting in the liquidation of around $150 million worth of short positions.
Fed Move Stabilizes Prices but Implications for Crypto Market Negative
Despite moves from the Fed stablizing prices across traditional markets and 2023 showing signs that these markets are bouncing back from their slump earlier this year – it is clear that there could be some negative implications for the crypto market overall in the long term which should concern investors considerably going forward.
Ultimately, this weekend has demonstrated just how volatile and unpredictable crypto can be when faced with external factors such as bank collapses or macroeconomic movements like we have seen here recently with trad-fi wobbling significantly. It is therefore essential for investors looking to capitalize on these markets to remain vigilant and aware of any developments which could affect their investments going forward