Bitcoin plunges to 7-week low, crypto market loses $70 billion in capitalization

The consequences of the Silvergate bank shutdown continue to haunt the crypto market, causing the Bitcoin price to plummet.

Price movement of top cryptocurrencies in the market at 08:35 AM on 10/03/2023. Source: Coin360

The late night of March 9 and the morning of March 10, the cryptocurrency market experienced a new serious correction, causing the industry capitalization to drop from $1 trillion to just $933 billion within 12 hours.

The cause of the drop is said to be the fact that Silvergate Bank, a partner in USD transaction processing of many major crypto companies in the US, announced the shutdown. Investors are worried that the Silvergate incident could trigger a new crisis in the crypto market. Positive news about Mt. Gox’s continued delay in the payment of BTC to creditors was not enough to prop up the price.

Bitcoin at the time of writing is down 8.6% compared to 1 day ago, collapsing to $ 19,776. This is BTC’s lowest price mark in the past 7 weeks and also the first time since mid-January that the world’s largest cryptocurrency has fallen below the psychologically important $20,000 threshold.

1h chart of BTC/USDT pair on Binance exchange at 08:30 AM on 10/03/2023

Ethereum had a “free fall” from $ 1,500 to $ 1,408 in just 1 hour, also returning to its lowest price since mid-January.

1h chart of ETH/USDT pair on Binance exchange at 08:30 AM on 10/03/2023

The top large-cap altcoins are all seeing corrections between 5 and 10% right now, with red filling the charts.

The total value of derivative orders liquidated in the past 12 hours reached 290 million USD, accounting for the majority of BTC and ETH. In addition, the rate of long orders being burned accounted for 91%.

Liquidated cryptocurrency value in the last 12 hours, data taken from Coinglass at 08:30 AM on 10/03/2023

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