Skip to main content

USDC Stablecoin Temporarily Depegs to $0.76 on Binance Amid Market Turbulence

USDC Temporary Depeg on Binance Amidst Crypto Market Sell-Off

Circle’s USDC, typically pegged to the dollar, experienced unexpected volatility on Binance, dipping as low as $0.76 amidst a market rattled by Bitcoin ETF skepticism and a significant liquidation in derivatives.

USDC Temporarily Depegs on Binance Amidst Crypto Market Sell-Off

In a surprising move that startled the cryptocurrency market, Circle’s USDC dollar-pegged stablecoin momentarily depegged from its $1 value, falling as low as $0.76 on the Binance exchange platform. This incident occurred during a market-wide sell-off, which was spurred by skepticism over the potential approval of a spot bitcoin ETF this month. Notably, USDC experienced three distinct price drops against its tether (USDT) trading pair on Binance between 12:10 and 12:21 UTC, hitting lows of $0.76, $0.803, and $0.80 before quickly recovering back to its $1 peg each time.

This depegging is likely to be the result of a lack of sufficient liquidity when large sell orders were placed for USDC in exchange for USDT. The Binance 2% market depth for the USDC/USDT pair revealed a skew towards the upside, indicating that any sell order larger than the $6.1 million liquidity floor could force the price below its $0.98 usual fluctuation. The instability was also influenced by a $500 million liquidation in derivative positions following a report that speculated on the SEC’s rejection of various spot bitcoin ETF applications.

The volatility of USDC is particularly notable given its usual stability as a fiat currency-backed stablecoin, exchangeable at a 1:1 ratio with the US dollar. Such drops can cause ripples across the crypto market, affecting trust and perceived stability, although this time appears to be a contained event. This isn’t the first time USDC has experienced a depeg; it notably traded down to $0.877 following the collapse of Silicon Valley Bank earlier in March 2023, a situation that arose due to a portion of its reserves being held at the beleaguered bank.

Binance was not alone in experiencing a depeg of the USDC stablecoin; Okx also encountered a similar issue, albeit to a lesser degree, with USDC dropping to $0.955. Interestingly, the depegging on Okx commenced earlier than on Binance, beginning at 12:01 and persisting until 12:21 UTC, contrasting with the three snap-back recoveries observed on Binance’s platform.

What is your go-to stablecoin? Share your thoughts and opinions about this subject in the comments section below.



from Bitcoin News https://ift.tt/OcNxvkX
Labels:

Comments

Post a Comment

Popular posts from this blog

Seven UK Companies Form Cryptocurrency Trade Body

Seven major crypto companies operating in the UK have announced the formation an independent cryptocurrency trade body. The group, Crypto UK, has stated that its principal aim is to “improve industry standards and engage policymakers.” Also Read:   Independent Ratings Agency Alerts Investors About Dangers of Tether Leading Cryptocurrency Companies form Crypto UK Trade Body Seven leading cryptocurrency companies operating the UK have formed an independent trade body tasked with developing self-regulatory standards for the cryptocurrency industry, in addition to “engag[ing] policymakers.” The members of Crypto UK are Coinbase, Etoro, Cex.io, Blockex, Commerceblock, Coinshares, and Cryptocompare – comprising trading platforms, exchanges, asset managers, merchants, comparison websites, and intermediaries from the cryptocurrency sector. “Regulation is Imminent” The Crypto UK chairman and managing director of Etoro, Iqbal Gandham, described the trade body’s mission as “promot[in...
41 comments
Read more

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

International Crypto Exchange Luno Adds Bitcoin Cash Trading

Luno exchange has added bitcoin cash trading to the platform following feedback from its client base. BCH is now only the third cryptocurrency available for trading on the exchange, in addition to BTC and ETH , but more options could be on the way once Luno determines that they are credible enough. Also Read: Bitflyer Adds Bitcoin Cash Trading Across Europe and the US Luno Adds Bitcoin Cash Trading Luno, the London-headquartered company formerly known as Bitx, recently announced that bitcoin cash was made available on its cryptocurrency exchange. Starting from Monday, September 23, customers at Luno are now able to store, buy and sell BCH on the platform. The reason given for adding BCH to the exchange is feedback from users in developing markets that convinced Luno to expand their offering from previously just BTC and ETH . Marcus Swanepoel, CEO of Luno, said , “We are in a new and exciting financial era. Developing economies are leading the large-scale adoption and appli...
Post a Comment
Read more