Mar 13, 2023
Bitcoin Reclaims $20K, USDC Peg Collapses
As Bitcoin (BTC) attempted to reclaim its $20,000 support level on March 11, the crypto markets were rocked by a series of events that threatened the stability of USDC, a popular stablecoin. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $20,200 at the time of writing.
The events began with the collapse of Silicon Valley Bank (SVB), which followed Silvergate in dealing a fresh blow to some crypto firms. At the heart of the debacle was payments technology company Circle, which overnight revealed it had part of the reserve funds for its stablecoin, USD Coin (USDC), with SVB.
The news sent USDC into a downward spiral, and it was redeemable at the time of writing for only $0.91. At one point, Bitcoin was worth more than $26,000 in USDC terms on the major exchange Kraken.
Cory Klippsten, CEO of Swan Bitcoin, reacted to the news by noting that “if USDC is only 90% backed, the equilibrium price is NOT $0.90. The equilibrium price is ZERO. Everyone has the incentive to redeem asap for $1. You don’t want to be in the last 10%, with all the money already gone.”
Circle responded by noting that it had a further five banking partners for managing its USDC cash reserves.
The news sent shockwaves through the crypto markets, with average funding rates reaching their most negative levels since the FTX aftermath in November 2022. This indicated a strong belief that further losses could still impact Bitcoin.
Commentator Tedtalksmacro argued that this overwhelming bearish bias could provide fuel for a classic “short squeeze” higher on BTC/USD. “The market remains heavily short here, still. And that could provide fuel for BTC to test at least 21.4k short-term,” they tweeted.
Meanwhile, Crypto Tony suggested that there might be a return to the downside in the short term. “Amongst the madness today, Bitcoin remains good. I am anticipating another drop down to the interim support zone around $19,200,“ they said.
The events of the past week have highlighted the importance of NFTs and other web3 technologies in promoting and marketing digital assets. To capitalize on the growing demand for NFTs, a number of crypto companies are turning to NFT marketing agencies and web3 agencies to help them sell NFTs and promote their digital assets.
These agencies provide a range of services, from creating promotional campaigns to helping companies set up NFT marketplaces. They can also help companies create unique NFTs and leverage Twitter NFT marketing to reach a larger audience.
Ultimately, the events of the past week have shown that the crypto markets are still volatile and that investors should remain cautious. However, the potential of NFTs and other web3 technologies should not be overlooked. As more companies turn to NFT marketing agencies and web3 agencies to help them promote their digital assets, the crypto markets may become more stable and more accessible to a larger audience.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.