Some Crypto Funds Confident Of USDC Recovery Amid SVB Contagion?
USDC Coin Price News: The cryptocurrency market displayed signs of recovery amid concerns of liquidity issues stemming from the failure of two US banks — Silvergate and Silicon Valley Bank. But the depegging of USD Coin (USDC) is reminiscent of the Terra stablecoin terraUSD (UST) in 2022. The USDC stablecoin had at one point lost 12 cents of value owing to its exposure to the Silicon Valley Bank. Circle, the USDC operator, said it has exposure to around $3.3 billion of stablecoin reserves in the bank.
Also Read: Is Vitalik Buterin Supporting USDC Amid Heavy Depegging?
The announcement from Circle led to a fall in the coin’s value, losing its peg to the US Dollar. This announcement followed crypto exchange Coinbase suspending the USDC – US Dollar conversions on its platform.
Crypto Funds Trying To Bag Coins At Cheaper Price?
While the stablecoin depegging was caused by panic selling, some of the crypto funds appear to be confident of a recovery eventually. Some of the crypto funds, including a wallet purported to be of Vitalik Buterin, are accumulating USDC at current price, which is around nine cents down from its peg. Firms like Jump Trading, Wintermute Trading, Genesis Trading and BlockTower Capital are said to have bought USDC, just in time before the weekend bank holiday, as per on-chain data.
Meanwhile, the Bitcoin price is showing encouraging signs with recovery by around 2.50%, after few days of bearish momentum that began with the crisis around Silvergate Capital. On the other side, the selloff in the stablecoin triggered a demand for another top stablecoin, Tether (USDT), which saw a rise in daily trading volume by aound 17%.
Also Read: Binance Switches To Multiple Stablecoins, Discontinues Auto-Conversion Policy
On Friday, California regulators seized the Silicon Valley Bank and assigned the FDIC with responsibility to handle insured deposits, which will be accessible on Monday, 11 March 2023. The latest stablecoin depegging comes at a time when US regulatory agencies like the U.S. Securities and Exchange Commission (SEC) initiated enforcement actions on crypto businesses.
- REX-Osprey Files For ADA, HYPE, XLM, SUI ETFs as Crypto ETF Frenzy Heats Up
- ChangeNOW’s Quiet Power Play in Helping Crypto Businesses
- Standard Chartered Sees Bitcoin Soaring to $200,000 by Year-End on ETF Boom
- Walmart’s OnePay App to add Bitcoin and Ethereum trading
- Tech Giant Samsung Taps Coinbase To Provide Crypto Access, Driving Adoption
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
- Solana Price Eyes $360 After Bullish Retest As VisionSys AI Deploys $2B Treasury Strategy
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
