Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: Coinpedia Fintech News on March 13, 2023, 02:07:49 PM
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On March 12, the panic caused by the USD Coin's depeg from the U.S. dollar led to a flash spike in the BTC/USDC pair on Binance, with Bitcoin's price rising to $50,000, though only for a few minutes. The sudden surge was likely due to thin order books for the newly launched BTC/USDC pair on Binance, as a Bitcoin market order ate through limit sell-orders on the pair up to $50,000.
However, the futures market remained unaffected by the spot BTC/USDC pair, averting potential massive short-side liquidations. This isn't the first time cryptocurrency exchanges have experienced flash crashes and spikes, with exchanges in the past facing similar issues that led to customer anger and refund requests.
The value of USDC dropped to lows of $0.87 on March 11 due to Circle's exposure to the defunct Silicon Valley Bank (SVB), causing instability in USDC trading pairs on other exchanges. However, the United States Treasury, Federal Reserve, and Federal Deposit Insurance Corporation have decided to bail out SVB and Signature Bank's customers, restoring market confidence. Investors should conduct their own research before making any investment or trading decision as every move involves risk.