Key Points:
- BTC suddenly hit the $50,000 mark, but only on the USDC trading pair.
- The reason given for the above flash action is that USDC – Circle’s stablecoin is in danger of running out of liquidity.
- Circle has been working hard to bring USDC to the $1 level after announcing it could get back $3.3 billion stuck on SVB this morning after the bank opened.
- Binance also “takes advantage of this opportunity”, opening USDC/USDT futures trading with up to 30x leverage.
On the morning of March 13, the price of the BTC/USDC trading pair suddenly hit the $50,000 mark – the price range of November 2021, before the entire crypto industry plunged into the current bear season.
The above flash action is because USDC – Circle’s stablecoin is in danger of running out of liquidity.
On March 11, the USDC value fell off the $1 mark and was heavily depeged after the owner Circle admitted to having heavy exposure to Silicon Valley Bank. The amount of cash the company is freezing is up to $ 3.3 billion, much higher than the community’s $ 1 billion prediction. This means it accounts for 8.25% of the total $40 billion assets held as reserves for USDC.
This information created panic in the community, and users rushed to flee to other stablecoins or withdraw. At the same time, the USDC-rich pools on DeFi platforms like Curve have been exhausted in turn.
Another shock when at that time, Binance closed the USDC to BUSD conversion feature to curb the conversion pressure on the exchange. Coinbase also quickly followed, stopping swaps from USDC to USD. Until now, US banks are open to work again because it is the weekend.
The USDC price has suffered a heavy peg loss, falling as far as $0.882, and with it, a bunch of stablecoins on the market have been affected. This is the deepest depeg of this stablecoin in history, worse than when LUNA-UST or FTX crashed.
But according to the latest announcement, Circle confirmed that it could get back the trapped money, committed to cover the deficit of collateral assets, and resumed converting to USD this morning, still at the rate of 1 USDC to 1. USD. Thanks to that, stablecoin USDC has returned to the $1 mark.
Circle has also announced the selection of Cross River Bank as its new partner for automatically minting and redeeming USDC for customers. Then, the latest data was updated by Nansen, the stablecoin issuer who minted another 407.8 million USDC. This was the largest minting in the past week, bringing the total net change to $463.8 million.
In addition, Binance also “takes advantage of this opportunity”, opening USDC/USDT futures trading with leverage up to 30x. Before that, OKX, Huobi, Bitmex, and Bybit each acted similarly, with leverage up to 50x.
The day before, the exchange also added spot trading pairs BNB/USDC, BTC/USDC, and ETH/USDC, to attract more liquidity to the exchange and “rescue” Circle’s stablecoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
Author
Bitcoin
BTC/USDC Suddenly Hits $50,000
Key Points:
- BTC suddenly hit the $50,000 mark, but only on the USDC trading pair.
- The reason given for the above flash action is that USDC – Circle’s stablecoin is in danger of running out of liquidity.
- Circle has been working hard to bring USDC to the $1 level after announcing it could get back $3.3 billion stuck on SVB this morning after the bank opened.
- Binance also “takes advantage of this opportunity”, opening USDC/USDT futures trading with up to 30x leverage.
On the morning of March 13, the price of the BTC/USDC trading pair suddenly hit the $50,000 mark – the price range of November 2021, before the entire crypto industry plunged into the current bear season.
The above flash action is because USDC – Circle’s stablecoin is in danger of running out of liquidity.
On March 11, the USDC value fell off the $1 mark and was heavily depeged after the owner Circle admitted to having heavy exposure to Silicon Valley Bank. The amount of cash the company is freezing is up to $ 3.3 billion, much higher than the community’s $ 1 billion prediction. This means it accounts for 8.25% of the total $40 billion assets held as reserves for USDC.
This information created panic in the community, and users rushed to flee to other stablecoins or withdraw. At the same time, the USDC-rich pools on DeFi platforms like Curve have been exhausted in turn.
Another shock when at that time, Binance closed the USDC to BUSD conversion feature to curb the conversion pressure on the exchange. Coinbase also quickly followed, stopping swaps from USDC to USD. Until now, US banks are open to work again because it is the weekend.
The USDC price has suffered a heavy peg loss, falling as far as $0.882, and with it, a bunch of stablecoins on the market have been affected. This is the deepest depeg of this stablecoin in history, worse than when LUNA-UST or FTX crashed.
But according to the latest announcement, Circle confirmed that it could get back the trapped money, committed to cover the deficit of collateral assets, and resumed converting to USD this morning, still at the rate of 1 USDC to 1. USD. Thanks to that, stablecoin USDC has returned to the $1 mark.
Circle has also announced the selection of Cross River Bank as its new partner for automatically minting and redeeming USDC for customers. Then, the latest data was updated by Nansen, the stablecoin issuer who minted another 407.8 million USDC. This was the largest minting in the past week, bringing the total net change to $463.8 million.
In addition, Binance also “takes advantage of this opportunity”, opening USDC/USDT futures trading with leverage up to 30x. Before that, OKX, Huobi, Bitmex, and Bybit each acted similarly, with leverage up to 50x.
The day before, the exchange also added spot trading pairs BNB/USDC, BTC/USDC, and ETH/USDC, to attract more liquidity to the exchange and “rescue” Circle’s stablecoin.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Foxy
Coincu News
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