Why did USD Coin drop?

Circle's disclosure about its substantial holdings at the bank added to the growing uncertainty surrounding the stability of digital assets. The market reacted swiftly, pushing the value of USD Coin to a record low as investors rushed to reassess the risks associated with the cryptocurrency.

Circle, a prominent U.S. cryptocurrency enterprise, encountered a significant setback over the weekend as its USD Coin faced an unprecedented challenge. The stablecoin, which is designed to maintain a one-to-one value with the U.S. dollar, unexpectedly deviated from its peg.

This unexpected de-pegging occurred on Saturday morning, sending shockwaves through the cryptocurrency market. The revelation that Circle held nearly 8% of its $40 billion reserves at the now-collapsed Silicon Valley Bank fueled concerns among investors and market participants.

The collapse of Silicon Valley Bank, a prominent financial institution, had already caused widespread turmoil in the financial world. Its failure had Ripple effects, with several cryptocurrency companies also reporting exposures to the bank.

BTCC, a leading cryptocurrency exchange, offers a diverse range of services to its clients amidst this volatile market environment. The platform provides access to spot trading, enabling users to buy and sell cryptocurrencies at current market prices.