Crypto Traders Suffer Over $300M of Losses in Liquidations Amid Market Crash

The largest long liquidation in at least a month suggests Thursday’s crash in crypto prices has caught traders off-guard. Bitcoin traders suffered the most losses, some $112 million in the past 24 hours, while ether liquidations surpassed $73 million, per data from CoinGlass.

AccessTimeIconMar 9, 2023 at 11:53 p.m. UTC
Updated Mar 10, 2023 at 9:26 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto traders endured some $307 million of liquidations in the past 24 hours, data from CoinGlass shows, as crypto markets tanked Thursday on news about crypto-friendly bank Silvergate Capital (SI) winding down operations.

Traders on Binance, the world’s largest crypto exchange by trading volume, saw $104 million of losses, the most among exchanges, followed by $79 million of losses on OKX and $45 million on Huobi, per CoinGlass.

Bitcoin (BTC) traders suffered the most losses, some $112 million, while ether (ETH) liquidations surpassed $73 million.

Of the liquidated trading positions in the past 24 hours, some $282 million were longs, betting on higher prices. This is larger than the highest daily long liquidation of this year, recording $254 million on Feb. 8, according to Coinglass.

Binance and OKX saw the most liquidations, as the recent nosedive in crypto prices caught traders off-guard. (Coinglass)
Binance and OKX saw the most liquidations, as the recent nosedive in crypto prices caught traders off-guard. (Coinglass)

Soaring long liquidations suggest that cryptocurrency prices’ sudden nosedive caught investors off-guard. BTC, the largest cryptocurrency by market capitalization, has plummeted more than 6% in the past 24 hours, and earlier in the day reached its lowest level in seven weeks at around $20,050. Popular altcoins dogecoin (DOGE) and tron (TRX) have led the price decline.

Crypto markets enjoyed one their strongest starts year in their 14-year history, recovering some losses from the collapse of crypto exchange FTX. BTC rallied above $25,000 in February at one point after starting the year at about $16,600.

The recent decline has come as concerns mounted about the stability of Silvergate Bank, a key banking partner for digital asset companies. After suffering huge losses and dwindling deposits, the bank announced Wednesday evening that it will “voluntarily liquidate” its assets and shut down operations.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Krisztian  Sandor

Krisztian Sandor is a reporter on the U.S. markets team focusing on stablecoins and institutional investment. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.