Cryptodetective blank
  • Cryptocurrency News
    • Bitcoin News
    • Ethereum
      • Ethereum 2.0
    • Ripple
    • Solana
    • Shiba Inu
    • VeChain
    • Polygon
    • Stablecoin
  • Exchange News
    • Binance News
  • Finance News
    • Government and Regulations News
  • Cryptocurrency Market Analysis
  • Finance News
  • NFT News
  • Crypto explained
  • Knowledge Base
Reading: BREAKING: USDC stablecoin loses link to US Dollar
Share
  • bitcoinBitcoin(BTC)$27,878.00-1.47%
  • ethereumEthereum(ETH)$1,740.07-3.79%
  • USDEXUSDEX(USDEX)$1.07-0.94%
  • tetherTether(USDT)$1.010.27%
  • binancecoinBNB(BNB)$335.52-1.14%
  • usd-coinUSD Coin(USDC)$1.000.24%
  • rippleXRP(XRP)$0.377187-3.85%
  • cardanoCardano(ADA)$0.335033-4.38%
  • staked-etherLido Staked Ether(STETH)$1,742.67-3.61%
  • matic-networkPolygon(MATIC)$1.11-6.00%
CryptodetectiveCryptodetective
Aa
  • Cryptocurrency News
  • Exchange News
  • Finance News
  • Cryptocurrency Market Analysis
  • Finance News
  • NFT News
  • Crypto explained
  • Knowledge Base
Search
  • Cryptocurrency News
    • Bitcoin News
    • Ethereum
    • Ripple
    • Solana
    • Shiba Inu
    • VeChain
    • Polygon
    • Stablecoin
  • Exchange News
    • Binance News
  • Finance News
    • Government and Regulations News
  • Cryptocurrency Market Analysis
  • Finance News
  • NFT News
  • Crypto explained
  • Knowledge Base
Have an existing account? Sign In
Follow US
Copyright © 2023 Cryptodetective.net. All rights reserved.
USDC stablecoin
Cryptodetective > Blog > News > Cryptocurrency News > USDC > BREAKING: USDC stablecoin loses link to US Dollar
Cryptocurrency NewsFinance NewsUSDC

BREAKING: USDC stablecoin loses link to US Dollar

crypto
Last updated: 2023/03/11 at 11:38 AM
crypto Published March 11, 2023
Share

The USD Coin (USDC) stablecoin from Circle, a US-based company, has dropped to a price of 0.89 US dollars due to the fact that $3.3 billion of Circle’s funds are stuck in Silicon Valley Bank.

Contents
Circumstances leading to the problemCrucial for the American economyRipple effect of bank collapsePossible bank crisisIntervention from the Federal ReserveImpact on Bitcoin and cryptocurrency

Circumstances leading to the problem

On March 9th, Circle attempted to withdraw its entire capital of $40 billion from the bank, but they were only able to withdraw $36.7 billion, leaving $3.3 billion trapped.

BREAKING: USDC stablecoin loses link to US Dollar
source https://coinmarketcap.com/currencies/usd-coin/

Crucial for the American economy

Dante Disparte, Head of Strategy at Circle, has highlighted that Silicon Valley Bank is crucial for the American economy. If the bank were to collapse without a federal bailout, it would have far-reaching consequences for businesses, banks, and entrepreneurs in the United States.

Ripple effect of bank collapse

To illustrate the impact of a bank collapse like Silicon Valley Bank, we can look at the response of Coinbase and Jump Trading. These companies submitted $850 million and $138 million worth of USDC to Circle, respectively. This demonstrates how the problems at one bank can quickly spread throughout the entire financial system.

Possible bank crisis

It appears that the Federal Reserve’s interest rate hikes are now being felt in places where the central bank would prefer not to. Twitter is already abuzz with talk of a potential banking crisis. The stocks of many Western banks are plummeting, although Europe has been relatively spared so far.

Intervention from the Federal Reserve

If a banking crisis does occur, it is likely that the Federal Reserve will have to intervene. This would be a complete reversal of its policies. If more banks collapse or a situation arises that poses a threat to the entire American economy, there is a high chance that interest rates will suddenly plummet or support packages will be issued.

Impact on Bitcoin and cryptocurrency

From a Bitcoin and cryptocurrency perspective, this is an exciting period. There is a chance that Bitcoin could experience its first global recession, and it will be interesting to see what this means for its price.

The situation with Circle and Silicon Valley Bank is cause for concern for the US economy, and could potentially trigger a banking crisis. The Federal Reserve may need to take drastic action to prevent this, which could have a significant impact on the economy and cryptocurrency market. It is important to monitor the situation closely.

You Might Also Like

Avalanche Platform AVAX

Casper Cryptocurrency: A New Era of Blockchain Consensus and Security

BlockFi Holds $227 Million at Troubled Bank: What You Need to Know

Polymesh: The Next Generation Security Token Platform Built for Institutional Use

Silicon Valley Bank UK Sold for £1, Bitcoin Waits and Watches

TAGGED: stablecoin, USDC

Stay informed with the latest Crypto News

Sign Up for Our Newsletter Today!

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Share this Article
Twitter Whatsapp Whatsapp Reddit Telegram Email Copy Link Print
Share
Unveil Your Crypto-Clues: Express with Emojis!
Joy0
Surprise0
Embarrass0
Sad0
Cry0
Angry0
Sleepy0
Dead0
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay connected

Follow us on Social Media
1.2k Followers Follow
Telegram Follow

Stay Informed with the Latest Crypto News:

Sign Up for Our Newsletter Today!

Popular News
AVALANCHE edit
Avalanche Platform AVAX
coinone edit
WEMIX Announces Coinone Listing as Ecosystem Continues to Expand
Ankr, Microsoft, Web3, Blockchain, Decentralization, Node-Hosting, Azure Marketplace, Cryptocurrency edit
Ankr and Microsoft Partner to Develop Web3 Applications – An Exciting Milestone for Decentralization!

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Telegram
Cryptodetective blank

Stay one step ahead of the game with CryptoDetective.net - Your trusted source for all things crypto. From the latest news and trends to expert analysis and insights, we've got you covered.

Subscribe to our newsletter

Stay Informed with the Latest Crypto News: Sign Up for Our Newsletter Today!

Important pages

  • About cryptodetective
  • Disclaimer
  • Team
  • Privacy Policy
  • Sitemap

Copyright © 2023 Cryptodetective.net. All rights reserved.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?