Block Journal
No Result
View All Result
  • Login
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
Magazine
Newsletter
  • Trending Now
  • Bitcoin
  • Altcoin
  • Ethereum
  • Analysis
  • Blockchain
  • Metaverse
  • NFT
  • DeFi
  • Web3
  • GameFi
  • ICO
  • Legal
  • Security
Block Journal
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine
en English
nl Nederlandsen Englishfr Françaisde Deutschit Italianopt Portuguêsru Русскийes Españolth ไทยzh-CN 简体中文hi हिन्दीja 日本語
No Result
View All Result
Block Journal
No Result
View All Result
  • News
  • Crypto
  • Markets
  • Investing
  • Videos
  • Charts
Home Crypto Analysis

Is Circle’s USDC Stablecoin Crisis a Blessing in Disguise for Bitcoin?

News Room by News Room
March 13, 2023
in Analysis
Reading Time: 2 mins read
0 0
A A
0

u.today

12 March 2023 15:39, UTC

  

Reading time: ~2 m

The recent crisis surrounding Circle’s USD Coin (USDC) stablecoin may have inadvertently boosted Bitcoin, according to an analysis by Twitter user Byzantine General.

The analysis suggests that people have resorted to buying Bitcoin and shorting cross 1x inverse to achieve a synthetic USD, which has resulted in extreme negative funding because so many are doing it. Byzantine General believes that this trend may provide an incentive to pump the flagship cryptocurrency.

Some members of the crypto community have expressed skepticism about Byzantine General’s analysis, arguing that current rates are mostly driven by panic buying and spot buying from people getting out of USDC. They claim that open interest is not growing and volume doesn’t seem like outliers. However, other members of the community see merit in Byzantine General’s analysis, suggesting that the collapse of the USDC may be causing a shift towards Bitcoin.

USDC, a vital component of the cryptocurrency market and designed to maintain a steady $1 value backed by cash and short-term Treasuries, plunged below its intended 1-1 dollar peg after its connection to the failed Silicon Valley Bank was exposed.

About $3.3 billion of USDC’s reserves were linked to the bank, and its value plummeted to as low as 81.5 cents. Other minor stablecoins like DAI and Pax Dollar have also slipped from their pegs, indicating a wider sense of anxiety.

In the absence of clarity about the return of deposits, USDC has fallen below $1, and concerns about the wider implications of Silicon Valley Bank’s collapse have spread. However, stablecoin Tether has so far remained stable at $1, despite previous scrutiny over its reserves.

Meanwhile, Bitcoin has been largely unaffected by the USDC crisis, with some crypto analysts suggesting that the crisis may actually be a blessing in disguise for the crpyto king as it drives investors towards the more established and stable cryptocurrency.

While the implications of the USDC crisis are yet to be fully understood, some crypto experts believe that the crisis may have a positive effect on Bitcoin’s value. Byzantine General’s analysis, while not universally accepted, provides an interesting perspective on the potential consequences of the USDC crisis.

Read the full article here

ShareTweetSharePinShareShareSend

Related News

Bitcoin’s price is flat as Federal Reserve keeps interest rates unchanged
Analysis

Bitcoin’s price is flat as Federal Reserve keeps interest rates unchanged

September 21, 2023
Bullish Pattern Points to 30% Rally Ahead
Analysis

Bullish Pattern Points to 30% Rally Ahead

September 21, 2023
Crypto Staking vs. Yield Farming: Which Is Better?
Analysis

Crypto Staking vs. Yield Farming: Which Is Better?

September 21, 2023
Pepe Price Struggles, HarryPotterObamaSonic10Inu Pumps, Wall Street Memes Enters Last Week of Presale
Analysis

Pepe Price Struggles, HarryPotterObamaSonic10Inu Pumps, Wall Street Memes Enters Last Week of Presale

September 21, 2023
90% Don’t Want to Be Paid in Digital Rubles – CBDC Setback?
Analysis

90% Don’t Want to Be Paid in Digital Rubles – CBDC Setback?

September 21, 2023
ImmutableX price rallies by 40% in 24 hours, but whale activity remains weak
Analysis

ImmutableX price rallies by 40% in 24 hours, but whale activity remains weak

September 21, 2023
Will the Bulls Aim for the Highest Level in 5 Months After Storj’s Recent Price Movement?
Analysis

Will the Bulls Aim for the Highest Level in 5 Months After Storj’s Recent Price Movement?

September 21, 2023
STORJ Skyrockets to 4-Week High: Is $0.5000 Within Reach?
Analysis

STORJ Skyrockets to 4-Week High: Is $0.5000 Within Reach?

September 21, 2023
AI Is Coming To The World of Atoms In Powerful New Ways, According To Analyst
Analysis

AI Is Coming To The World of Atoms In Powerful New Ways, According To Analyst

September 21, 2023

Discussion about this post

Latest News

India stops issuing visas to Canadians as row escalates

September 21, 2023
eToro secures crypto registration in Cyprus to expand in EU

eToro secures crypto registration in Cyprus to expand in EU

September 21, 2023
Tether Responds to Stablecoin Lending Revival Move Amidst Scrutiny from WSJ

Tether Responds to Stablecoin Lending Revival Move Amidst Scrutiny from WSJ

September 21, 2023
EUR/CHF to break below the 0.97 level – Credit Suisse

EUR/CHF will dip below 0.95 in Q4 on the back of safe-haven flow – Rabobank

September 21, 2023
Oil steadies before the Fed, U.S. inventory draw offers little cheer

Oil prices inch closer to $100 per barrel amid inflation concerns

September 21, 2023
ADVERTISEMENT

Popular

  • Fed’s Williams: Expects inflation to decline to around 3.25% this year

    Fed Preview: Forecasts from 15 major banks, a pause, but the end of rate hikes?

    0 shares
    Share 0 Tweet 0
  • Basic Attention Token to implement KYC-free on-chain payouts

    0 shares
    Share 0 Tweet 0
  • Ukraine steps up efforts to break Russia’s Black Sea blockade

    0 shares
    Share 0 Tweet 0
  • We must stop climate solutions from killing biodiversity

    0 shares
    Share 0 Tweet 0
  • Bitcoin Onchain Data Show Bullish Undercurrents

    0 shares
    Share 0 Tweet 0
Block Journal

Block Journal is the world’s leading source in blockchain news and updates. Follow us to stay up-to-date with all you need to know in web3.

LEARN MORE »

Recent Posts

  • India stops issuing visas to Canadians as row escalates
  • eToro secures crypto registration in Cyprus to expand in EU
  • Tether Responds to Stablecoin Lending Revival Move Amidst Scrutiny from WSJ

Trending Topics

AI Altcoin Analysis Bitcoin Blockchain Commodities Crypto DeFi Ethereum Forex Futures GameFi ICO Interview Investing Legal Markets Metaverse News NFT Security Stocks Uncategorized Videos Web3

Get Informed

The most important crypto and finance news and events of the day

Be the first to know latest important news & events directly to your inbox.

By signing up, I agree to our TOS and Privacy Policy.

  • About
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact

Copyright © 2023 Block Journal - Created by Sawah Solutions.

No Result
View All Result
  • Home
  • News
  • Crypto
  • Markets
  • Investing
  • Glossary
  • Videos
  • Charts
    • Crypto
    • Forex
    • Stocks
    • Commodities
  • Magazine

Copyright © 2023 Block Journal - Created by Sawah Solutions.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.