In the early trading hours of today, Bitcoin (BTC) plummeted by over 5%, dropping from $23,500 to $22,240. This sudden decrease was caused by a sense of insecurity and doubt surrounding Silvergate Capital, a bank known for its favorable disposition towards cryptocurrencies.

On-chain analytics revealed that prior to the decline, BTC's social activity rallied. To provide more context, its social volume surged to its highest spot in the last week. This was clear-cut market hysteria, and, as expected, was followed by a price drawdown.

According to data from the crypto analytics platform Coinglass, liquidations across the cryptocurrency market in the last 24 hours totaled $245.51 million, with 82,137 traders liquidated. 

BTC liquidations totaled during that period totaled $84.74 million. It is, however, mostly dominated by long liquidations. The prevalence of extended liquidations indicates that the leverage was biased toward the bullish direction, implying that the majority of traders had adopted positions that favored a price surge.