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On March 10, the crypto market experienced a massive sell-off that wiped out billions of dollars of value in a matter of hours. The main cryptocurrencies, Bitcoin and Ethereum, both fell by 7% within the past 12 hours. This has been attributed to several pieces of negative news that hit the market all at once.
One of the biggest losers was Huobi token (HT), which saw a sudden 90% drop in value. This was due to a series of leveraged liquidations by some users. Despite this significant decline, Sun maintains that such market fluctuations are normal.
Alex DovbnyaAdditionally, Ethereum has been marked as a security in the lawsuit filed by the New York attorney. This would be the first time the second biggest cryptocurrency on the market has been marked as a security in public documents, which creates an unseen precedent that might cause serious harm to the cryptocurrency trading industry.
Hedera Hashgraph (HBAR), a decentralized PoS ledger, shut down network services citing "network irregularities," fueling rumors of a possible hack. The platform remains tight-lipped on the issue.
Meanwhile, Silvergate Bank announced its closure due to a bank run triggered by regulatory concerns over whether its payment network had facilitated thousands of customer transfers from FTX to Alameda Research accounts.
President Biden also contributed to the negative news by proposing a 30% tax on crypto mining electricity usage, regardless of ownership and rental, as part of his budget plan to reduce environmental impact and mining activity.
And the cherry on top: Silicon Valley Bank suffered a 60% plunge on Thursday after selling off its bond portfolio worth $21 billion. The bank's role in the start-up industry is comparable to Lehman Brothers, and its implosion is a massive hit to the economy in general.
Tomiwabold Olajide
Dan Burgin
Alex Dovbnya
Vladislav Sopov