Some Crypto Funds Confident Of USDC Recovery Amid SVB Contagion?

usdc USD coin

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.

The post Some Crypto Funds Confident Of USDC Recovery Amid SVB Contagion? appeared first on CoinGape.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Finixio Crypto: From Online Marketing to Cryptocurrency Scams?

Cryptocurrency scams have been a constant threat to the industry since its inception. These scams not only drain funds from unsuspecting investors but also contribute to the negative perception of cryptocurrency as a whole. One such company that has been experimenting with online users’ psychology is Finixio crypto. In this article, we will delve into

Binance CFTC Lawsuit Has Enough To Affect Major Crypto Downtrend?

Crypto News: The Commodities Futures Trading Commission (CFTC) lawsuit against crypto exchange Binance changed the narrative in the market, but it remains to be seen if the move still has enough legs to affect a major downtrend in cryptocurrency prices. Although the news of the lawsuit led to significant drop in Bitcoin price, it continues

Miners Dumping Bitcoin To Crypto Exchanges, BTC Price Reversal Below $25K Likely

Bitcoin price fell from $28K to $26.5K after the US CFTC sued crypto exchange Binance and its CEO Changpeng “CZ” Zhao for violating U.S. crypto trading and derivatives regulations. The crypto market considers this move as a continued regulatory crackdown against crypto. With the crypto market already facing liquidity issues, action against Binance will further

XRP Lawyer: After CFTC, SEC Could Sue Binance Over Securities Offerings

Crypto News: The Commodity Futures Trading Commission’s (CFTC) lawsuit on crypto exchange Binance made waves in the market. But the CFTC’s views on crypto classification is becoming a much bigger debate as US regulators continue enforcement actions on crypto businesses. Meanwhile, the crypto market is perceiving this as a fight between the two regulatory agencies,