• 23 July, 2024
News

Will Bitcoin Soar As USD Coin Depegged Following Silicon Valley Bank Collapse?

The cryptocurrency market experiences heighten volatility as repercussions of SVB and other Bank failures in recent times

The global cryptocurrency market is witnessing a turbulent time over the past week after having a good start in January. Investors become cautious and concerned as the billions of dollars backing the USD coin- the second largest stablecoin locked up in the Silicon Valley Bank (SVB). SVB is the second crypto-linked bank As the news flashed in the market a sense of fear prevailed causing USDC to lose its dollar peg.

On Friday, after the US regulators shut down SVB, the stablecoin prices swung wildly up. Further, gas fees paid to network validators for blockchain services also rolled up. As a consequence, USDC/USDT, which tracks Circle’s coin vs Tether’s, reached a record low at $0.89 on Saturday.

Is This an opportunity for Bitcoin

Source: Trading view

As per Santiment, the fallout of USDC did affect the price momentum in BTC in the short term. But, the threat turns neutral. The paltform reported that the rumors of USDC as a digital dollar and huge transfers of confiscated bitocins lead to the presumption of artificially induced FUD.

After testing the low of $19,569, the BTC price jumped nearly 16% in four sessions. Technically speaking, the price under the short-term upside momentum. But, on the daily chart, a strong resistance is playing around $25,000. A critical level to test, a break above or below will further decide the next directional bias. 

Coinbase Stands Up for Cryptocurrency Industry with Amicus Brief in SEC v. Wahi Read Previous

Coinbase Stands Up for Cryptocurrency Industry with Amicus Brief in SEC v. Wahi

Crypto Maxis Rejoice as Fed Rate Cut Creates Separation for Bitcoin and Other Cryptocurrencies Read Next

Crypto Maxis Rejoice as Fed Rate Cut Creates Separation for Bitcoin and Other Cryptocurrencies