Cryptocurrencies are recovering from the collapse they suffered after the Silvergate bankruptcy, JPMorgan’s break with the Gimini exchange and the fall of Silicon Valley that ended up giving it the coup de grace.
Cryptocurrencies are recovering from the collapse they suffered after the Silvergate bankruptcy was known, the rupture of JPMorgan with the Gimini exchange and the fall of Silicon Valley which ended up giving him the coup de grace.
Cryptocurrencies: recovery after Silvergate
Cryptocurrencies are suffering from a month to forget once again, after the recovery they achieved in January, due to increased regulations and new rate hikes from the Federal Reserve (Fed). However, after the Bitcoin will pierce key support of US$20,000, in the last 24 hours it managed to recover it like the rest of the cryptocurrencies.
This Sunday, March 12, the 20 main cryptocurrencies in the market rise up to 7% thanks to UNUS SED LEO (LEO), followed by TRON (5%), Polygon (5%), Solana and USD Coin by 4%. Bitcoin advances 2% and trades at $20,300, while Ethereum manages to approach $1,500. As for DAI, the stablecoin that lost parity with the dollar yesterday, is slowly recovering with a rise of 3% to u$s0.9572.
The DAI Crash
USD Coin (USDC), the second largest stablecoin by market capitalization, fell below its expected price of $1 after Circle, its issuing company, revealed that it had part of its reserves at failed Silicon Valley Bank. .
USDC issuers said Friday afternoon that they had an unspecified amount of money on deposit with Silicon Valley Bank (SVB), a major California-based bank that was shut down earlier in the day by regulators. Circle specified shortly after that the amount of reserves in the bank’s custody was $3.3 billion.
The company said in a tweet on Saturday to early morning (GMT-3) that it had been unable to withdraw its funds from the bank, which represent just over 8% of USDC’s $40 billion in reserves.
The revelation of Circle raised fears among investors, who rushed to change their USDC for other assets. The currency, which is expected to maintain a 1-to-1 price parity with the US dollar, plunged to a record low of $0.87 on Saturday.
A few minutes later, several cryptocurrency exchanges, including Coinbase and Binance, announced the temporary halt of USDC conversions due to market conditions and high activity flows. However, the market is expected to stabilize in the next few hours.
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