Articles

The USDC digital currency is recovering and returning to the level of $0.95, and Bitcoin regains the value of $20,000

300×250

The past 24 hours saw the cryptocurrency market take a breather, as it managed to recover about $16 billion in total market cap.

However, turmoil around USDC continues, although the stablecoin has recovered to around $0.95 as Circle issued a somewhat reassuring statement.

USDC recovery and return to $0.95:

The decline in value of the stablecoin USDC has been the hottest topic in the cryptocurrency market over the past 48 hours.

USDC is the second largest stablecoin by market capitalization and the fifth largest cryptocurrency of all time.

As a stablecoin, the price of USDC should never fluctuate and fall below $1, but yesterday, the price of the coin collapsed and fell below $0.90 for the first time.

This happened, after the Silicon Valley bank one of the biggest financial institutions in the fintech world was shut down, mainly by regulators.

It turns out that Circle has $3.3 billion of its cash reserves backing USDC into SVB suggesting that until the bank’s problems are resolved, USDC is not backed 1 to 1 in dollars.

This led to a drop in the value of the USDC cryptocurrency, but Circle issued a statement, reassuring that even if funds were lost in SVB, they would cover any shortfalls. The statement reads:

In such event, Circle will, as required by law and under the Stored Value Fund Transfer Regulation, stand behind the USDC and cover any shortfall using Company resources, including external capital if necessary.

2TG300X250

This seems to have calmed the sentiment as USDC price has recovered back to around $0.95 at the time of writing.

Bitcoin regains the $20,000 level:

The above also had an impact on the cryptocurrency market.

Bitcoin price managed to recover the important technical and psychological level of $20,000 and is currently trading above it.

Bitcoin price is up about 1.7% on the day.

The price of Ethereum is also up around 2.1% over the past 24 hours as concerns about NYAG’s claim that ETH is a safe haven seem to be dissipating.

The price of the MATIC cryptocurrency also rose above $1 and gained 4% on the day.

Join the Bitcoin News channel to follow the most important events in the financial markets.

Read also:

The stablecoin USDC drops to $0.91 after SVB Bank was hit…details here

The Bitcoin Fear and Greed Index is at its lowest level in two months

easy3

Related Articles

Back to top button
Translate »

Adblock Detected

please turn off ad blocker