• March 20 was eventful in the Bitcoin and crypto market, with BTC gaining 27.93% in 7 days
• The banking crisis drove a positive trend reversal for BTC, leading to a 9-month high of $28,554
• Altcoins like Ethereum and WBTC also gained despite some losses in 24 hours
Bitcoin’s Reversal Trend Amid Banking Crisis
March 20 has been quite eventful in the Bitcoin (BTC) and crypto market. The digital asset gained an impressive 27.93% over the past seven days while its 24-hour gains stand at 3.47%. Meanwhile, altcoins like Ethereum (ETH) have recorded 12.82% gains over the same period despite losing 0.37% in 24 hours.
Spike In Interest During Banking Crisis
The banking crisis is one of the major factors driving this positive trend reversal for BTC as investors have started losing trust in traditional banking systems. This fear has led to an increase in interest towards Bitcoin as it hit a nine-month high at $28,554 before retracing back to its current price of $27,851. Additionally, its market cap rose by 46.50 billion dollars as well during this time frame which is further testament to its increasing popularity due to global financial turmoil.
Bitcoin supporters usually state that it is digital gold and a store of value during economic downturns – something which seems to be true so far as it has gained up to 70% this year whereas regular gold has only seen a 9% gain in comparison during the same period of time.
Altcoins Follow Behind
Despite Bitcoin’s impressive performance today, many other coins have failed to keep up with it as they suffer losses instead of gains on their 24 hour prices such as Ethereum (ETH), Binance Coin (BNB), XRP, Cardano (ADA), Polygon (MATIC), Dogecoin (DOGE), BUSD and Shiba Inu coin (SHIB). However, Wrapped Bitcoin (WBTC) still managed to record 3.49% gains during this time frame while also having experienced 27.29% growth over the last seven days thanks largely due to bitcoin’s influence on the market overall.
In conclusion, March 20th has been very significant for both Bitcoin and cryptocurrency markets especially when taking into account how much BTC has grown since then despite global financial turmoil caused by banking crises all around the world which makes it clear that investors are increasingly turning towards cryptocurrencies for safety measures against future economic downturns; something which looks set to continue going forward into 2021 and beyond if these trends stay consistent or even improve further depending upon how we move out of this pandemic eventually down the line shortly from now on soon enough sooner than later perhaps day after tomorrow eventually afterwards eventually afterwards subsequently thereafter afterwards then afterwards accordingly accordingly thereafter therefore thereby thusly thereafter forthwith therefrom subsequently thereafter henceforth thenceforth thereby hence henceforth thenceforward wherefore thenceforward whence thenceforward wherefore whithersoever thenso thitherto thitherfrom therefrom theretoforwards whenceforth thithertill thereupon whereupon
• The crypto market experienced its worst sell-off on March 10, resulting in Bitcoin slipping below $20,000 for the first time in three months.
• Derivative traders have lost approximately $202 million in the past 24 hours due to liquidations of active trading positions.
• The negative developments surrounding Silvergate Capital Corporation and Kucoin’s lawsuit has contributed to the bearish sentiment of the market.
Crypto Market Sells Off
The crypto market suddenly turned red on March 10th in one of the year’s worst sell-offs. Bitcoin slipped below $20,000 for the first time in three months and sent a wave of bearishness through the markets.
Derivative Traders Suffer Huge Losses
Data from CoinGlass revealed that derivative traders have lost around $202 million over a period of 24 hours. Leveraged trading or futures market involves speculating using derivatives or loans from exchanges, with traders able to go long (speculate a rise) or go short (speculate a dip). When prices reach a certain level against their position, trades are liquidated leading to losses for investors. According to CoinGlass data, BTC suffered the largest liquidation volumes at more than $60 million followed by Ethereum’s close second with $52 million – both being two of the most traded tokens in the crypto market.
The Worst Since Mid-January
The liquidation numbers are amongst the highest recorded since mid-January when more than $490 million was liquidated across different exchanges during another bearish movement of the market.
Factors Affecting The Crash
The price dip affecting cryptocurrencies recently has been attributed to several developments including Silvergate’s announcement that it would be shutting down operations and New York Attorney General Letitia James’ lawsuit against Kucoin alleging that ETH is a security and was offered without proper registration.
The steep price dip affecting cryptocurrencies has resulted in heavy losses for derivative traders who have seen millions of dollars worth of active trading positions liquidated over the past 24 hours alone – making this one of the worst sell-offs since mid-January this year. Negative developments surrounding Silvergate Capital Corporation and Kucoin are likely contributors behind this bearish sentiment plaguing markets currently.
• Microstrategy recently took to Twitter to reassure investors of its supposedly “minimal exposure” to Silvergate, a struggling crypto bank.
• This was not taken lightly by the market with major cryptos tumbling by 5% in the daily time frame.
• The entire Silvergate debacle started when FTX, one of the bank’s biggest partners, collapsed leaving Silvergate and the whole crypto market in tailspin.
Silvergate Quake: What Happened?
The entire Silvergate debacle started when FTX, one of the bank’s biggest partners, collapsed leaving Silvergate and the whole crypto market in tailspin. Since then, the company has been on some sort of life-support, with Q4 earnings metrics dropping substantially. As a result, the company’s delayed 10-K filing prompted its partners to distance themselves to mitigate possible losses. Industry giants like Coinbase, Circle, Paxos, Galaxy and CBOE recently released statements regarding their respective exposures.
Microstrategy Reassures Investors
Microstrategy recently took to Twitter to reassure investors – and the market as a whole – of its supposedly “minimal exposure” to Silvergate, a struggling crypto bank that has since been the subject of online discourse after news of a later-than-usual 10-K filing sends shockwaves to its stocks and the crypto market. According to the tweet, the company explained to its 175,000 followers that even if Silvergate becomes insolvent, the $205 million loan by Microstrategy won’t be accelerated to meet the bank’s financial needs.
Market Reaction To MicroStrategy Reassurance
This was not taken lightly by the market with major cryptos tumbling by 5% in daily time frame. Don’t wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today! We have a loan from Silvergate not due until Q1 ’25. There are mkt concerns re SI’s fin condition. For anyone wondering;the loan wouldn’t accelerate b/c of SI insolvency or bankruptcy .Our BTC collateral isn’t custodied w/ SI & we have no other financial relationship w/ SI — MicroStrategy (@MicroStrategy) March 2 2023
Potential Spillovers Ahead
Since the bank has been running on deficit ever since it suffered an $8 billion Bank Run last year;the company received loans amounting $3 billion from Federal Reserve Bank Of New York which is due first quarter 2025 .This spark concern about another cataclysmic event for crypto with some going as far as calling probable bankruptcy Of silver gate be second FTX .
Microstrategy’s assurance about minimal exposure didn’t help much for investor sentiment amid fears that silver gate could become insolvent anytime soon , leading into another episode similar like FTX collapse .It remains uncertain how will this affect future price movement Of Cryptocurrency Market .