USD Coin tumbled after owner Circle admitted it was holding $3.3 billion in bankrupt Silicon Valley Bank (SVB). In this respect writer Wall Street Journal.
The publication noted that investors are frightened by the situation with the SVB and have coined more than $2 billion in USD Coin. By March 11, the USD Coin coin had dropped below 87 cents (USD Coin is normally pegged to the US dollar at a 1: 1 ratio).
According to the authors of the article, shocks may occur in the world of cryptocurrencies, which has not yet recovered from the bankruptcy of the FTX crypto exchange due to the loss of communication with the dollar.
March 11 Bloomberg reportedGreg Becker, CEO of the bankrupt American SVB, said he sold a total of $3.6 million in shares in the weeks before the credit institution actually depreciated. This measure was included in a pre-prepared plan in case of a possible collapse of the SVB.
Prior to that, Bloomberg reported that Wall Street financiers feared a new banking crisis in the US after shares in SVB, a lender to tech startups, fell (-60%). Against this background, a number of US banks have also faced a decline in their own securities, and an urgent collection of economic aid to the affected SVB has sparked growing panic among stock traders.