USDC Stablecoin Briefly Loses Dollar Peg Amid Crypto Market Turbulence
• USDC stablecoin briefly fell to $0.74 against USDT on Binance during market sell-off • Occurred 3 separate times today between 1210-1221 UTC, snapping back to $1 each time • Caused by insufficient liquidity to maintain $1 peg when large market sell orders occur • Over $500M derivative positions liquidated following Matrixport report predicting SEC to reject spot BTC ETFs • USDC has experienced minor depegs before, but none exceeded 4%; last was in March around Silicon Valley bank collapse