USDC

This volatility occurred amid a broader market sell-off triggered by a report questioning how realistic the rumored spot bitcoin ETF approval is this month. 
The depegging incidents for <a href="https://financefeeds.com/circle-signs-sbi-holdings-to-boost-usdc-adoption-in-japan/">USDC</a> occurred between 12:10 and 12:21 UTC on Binance against its tether (USDT) trading pair. USDC's value momentarily fell to $0.74, $0.80, and $0.79 before quickly rebounding to its $1 peg each time. Such fluctuations can happen when large <a href="https://financefeeds.com/circle-restricts-individual-accounts-from-minting-usdc-stablecoins/">USDC sell orders for USDT</a> are placed, and the existing liquidity is insufficient to maintain the stablecoin's $1 parity. 
Binance's 2% market depth data for the USDC/USDT pair shows an imbalance, with significantly more orders placed above the $1 mark compared to those below it. According to CoinMarketCap, there were $26 million in buy orders up to $1.02, but only $6.1 million in sell orders down to $0.98. Consequently, sell orders exceeding $6.1 million could cause the price to drop below $0.98. Notably, trading volumes of $6.2 million and $4.3 million were recorded at 12:10 and 12:21 UTC, respectively. 
The broader market sell-off, which resulted in over $500 million in derivative positions being liquidated, was influenced by a Matrixport report. The report speculated that the SEC might reject several spot bitcoin ETF applications this month, contributing to the market's bearish sentiment. 
It's important to note that the USDC/USDT trading pair has previously experienced minor depegging events in the past months, though none of these instances exceeded a 4% deviation from its peg. 
Earlier in March, Circle’s token lost its dollar peg and slumped to an all-time low of $0.8 per coin after the issuer revealed it has nearly 9 percent of its $40-billion USDC reserves stuck at <a href="https://financefeeds.com/first-citizens-acquires-silicon-valley-banks-deposits-and-loans/">Silicon Valley Bank</a>. However, the stablecoin then recovered most of its losses after Circle assured investors it would honor the peg despite exposure to failed bank. At the time, cryptocurrency traders withdrew more than $10 billion from USDC in less than three weeks even as concerns over the fallout from the Silicon Valley collapse receded.

USDC depegs on mega sell order vs USDT

FinanceFeeds

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