Crypto traders endured about $307 million in liquidations over the past 24 hours, data from Coinglass shows, as crypto markets were buoyed by news Thursday that crypto-friendly bank Silvergate Capital (SI) was winding down operations.
Traders on Binance, the world’s largest crypto exchange by trading volume, saw losses of $104 million, the largest among exchanges, followed by $79 million in losses on OKX and $45 million on Huobi, as of Coinglass.
Bitcoin (BTC) traders suffered the biggest losses, around $112 million, while ether (ETH) liquidations exceeded $73 million.
Of the trading positions liquidated in the past 24 hours, about $282 million were longs, bets on higher prices. This is larger than the highest daily long liquidation this year, which was recorded at $254 million on February 8, according to Coinglass.
Skyrocketing long liquidations suggest that the sudden drop in cryptocurrency prices caught investors off guard. BTC, the largest cryptocurrency by market capitalization, has plunged more than 6% in the past 24 hours, hitting a seven-week low of around $20,050 earlier in the day. Popular altcoins dogecoin (DOGE) and tron (TRX) have led the price drop.
The latest drop comes as concerns have grown about the stability of Silvergate Bank, a key banking partner for digital asset companies. After suffering heavy losses and dwindling deposits, the bank announced Wednesday evening that it will “voluntarily liquidate” its assets and close operations.