USDC Depeg Controversy Continues as Circle Issues Reassuring Statement
Login

USDC Depeg Controversy Continues as Circle Issues Reassuring Statement

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


The cryptocurrency market is no stranger to ups and downs, but the past few days have been particularly turbulent for USDC. As a stablecoin, USDC’s value is supposed to remain constant at $1. However, in the past 48 hours, it has experienced a “depeg,” with its value dropping below $0.90 for the first time. Yikes!

Why Did USDC Lose Its Peg?

The reason for this sudden drop? Silicon Valley Bank, one of the largest financial institutions in the fintech world, was shut down by regulators, and it turns out that Circle, which holds a massive $3.3 billion in cash reserves backing USDC at SVB, was hit hard. This led to concerns that USDC was no longer backed by the US dollar, which sent the cryptocurrency tumbling.

But wait! Circle, the company behind USDC, has issued a statement reassuring investors that they will cover any shortfall, even if the money at SVB is lost. Phew, that’s a relief. And it seems that investors are breathing a sigh of relief too, as USDC has started to recover, now sitting at around $0.95.

Bitcoin’s Price Reclaims $20K

The controversy surrounding USDC has had a knock-on effect on the broader cryptocurrency market, with Bitcoin’s price recovering to the important psychological level of $20,000 and currently trading at $21,200. BTC is up by about 2.7% on the day. It’s good news for Bitcoin investors, but it remains to be seen how USDC’s troubles will impact the market in the long term.

Conclusion

While the situation with USDC may have caused a few heart palpitations in the cryptocurrency community, Circle’s reassuring statement has helped calm the waters. It’s just another reminder that the cryptocurrency market can be unpredictable, but with a little bit of reassurance, it can recover. And who knows, maybe this little bump in the road will pave the way for even greater things for USDC and the cryptocurrency market as a whole. Only time will tell.

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News