- The cryptocurrency market has experienced a significant rally after hitting lows on Friday.
- The global crypto market cap has rallied back above $1 trillion.
- The recent rally in the cryptocurrency market led to many liquidations.
On Monday, 13th of March, Bitcoin (BTC) and Ethereum (ETH), along with many other cryptocurrency tokens, experienced a significant rally after previously hitting lows on Friday, as the dust settled in reaction to the collapse of Silicon Valley Bank and growing fears of a wider financial crisis.
This surge saw Bitcoin and Ethereum rise by over 9% and 5%, respectively, despite the bank collapses’ negative impact on some companies within the industry.
On Friday, many cryptocurrency companies revealed their exposure to the failed Silicon Valley, causing the market to panic briefly. However, the cumulative value of cryptocurrencies has since increased by almost 15% from Friday’s close, hovering above the $1 trillion level at the time of writing. The sudden surge in the crypto market has caught many investors off guard, with liquidation rates indicating widespread surprise and shock.
Millions in Short Liquidations Lead to Market Pump
Within 24 hours, the crypto market has seen $61.77 million in long trades and $305.44 million in short trade liquidations. Exchange liquidations have also been significant, totaling $130 million in the last four hours.
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These events have caused substantial liquidation rates, with Coinglass reporting around 418 BTC and nearly 4,500 ETH of liquidation. These figures total approximately $10.8 million and $7.8 million, respectively.
On the Flipside
- The recent rally in cryptocurrency amidst the traditional banking crisis has highlighted the potential of digital currencies to operate independently of traditional financial institutions.
- The recent banking crises and financial uncertainties will continue to fuel volatility in the cryptocurrency market.
Why You Should Care
Despite fears of a wider financial crisis caused by the collapse of Silicon Valley Bank, the crypto market has bounced back. This unexpected turn of events highlights the resilience of the cryptocurrency market and its potential for significant growth and development outside of the traditional banking system. Crypto was designed to be removed from traditional banks, and this recent price surge shows that some investors recognize the value of this decentralized model.
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Stay informed on the latest developments caused by the Silvergate and Silicon Valley collapses:
“Crypto Has Been De-Banked:” Impact of Signature, Silvergate, and Silicon Valley Bank Collapse
Last week crypto was in a bearish trend, and we discussed the short-term future. Read more about it here:
Bull Trap Confirmed? Market Cap Plunges Sub $1 Trillion, Bitcoin Sinks Past $20K
