Crypto: General panic following a de-peg of Circle's USDC

USDC lost its peg to the dollar yesterday. Instead of trading at $1, this Circle stablecoin saw its value drop to a worrying level on Binance. Enough to create a panic situation in the crypto community.

USDC crypto down to $0.74

Mid August, USDT suffered from a de-peg causing an exchange price of $0.9988. This was not the first time that Tether’s crypto stablecoin, or stablecoin, could not maintain the 1:1 ratio with the US dollar during the same month. And this continued until September.

Why is USDT became an “unstablecoin” ? Among other causes, analysts have argued a massive liquidation on major cryptocurrency exchanges. Some even went so far as to accuse Binance and Changpeng Zhao of doing bad things towards Tether.

The USD Coin fell to a very low level yesterday January 3

Circle’s $USDC stablecoin has momentarily lost its anchordropping to as low as $0.74 three times today, following widespread market selling spurred by a report casting doubt on the approval of a Bitcoin Spot ETF this month- this. »

According to CoinDeskthe stablecoin USDC lost its 1:1 parity to the dollar three times yesterday, January 3.

Here are some details about these depegs: from 12:10 to 12:21 UTC, USDC was down to $0.74, $0.80 and $0.79. This stood out against its USDT trading pair on cryptocurrency exchange Binance.

And that’s not all: the 2% market depth for the USDC/USDT trading pair has been biased upward on Binance. This caused staking orders of $26 million up to $1.02 and $6.1 million in staked orders down to $0.98.

That is, by the time a trader places a sell order above $6.1 million, the price of USDC would drop below $0.98. However, the volume was estimated at $6.2 million at 12:10 UTC and $4.3 million at 12:21 UTC.

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