USDC Stablecoin Momentarily Depegs to $0.74 on Binance
Circle's USDC stablecoin experienced three drops to $0.74, $0.80, and $0.79 against its tether (USDT) trading pair on Binance due to a marketwide sell-off triggered by a report doubting the approval of a spot bitcoin ETF this month. The price quickly returned to $1 each time. The sell-off happens when a trader sells USDC for USDT and there isn't enough liquidity to maintain the $1 peg. The 2% market depth on Binance for the USDC/USDT pair is skewed to the upside, with $26 million in orders up to $1.02 and $6.1 million in orders down to $0.98. Over $500 million in derivative positions were liquidated following a report by Matrixport, predicting the SEC would reject several spot bitcoin ETF applications this month. This trading pair has seen several slight depegs in recent months, but none exceeded 4% in either direction. The last time USDC lost its peg was in March after the collapse of Silicon Valley bank, when it traded down at $0.86.
