Hello everyone.....
I hope you guys are fine and doing great in your life.....
So today after very long time I am writing this post because I was on tracking and after that Holi came so today it is time to write a post, although in the meanwhile I wrote many posts but due to lack of internet I could not post them. and they're all still in draft.We will talk about them some other days , let's discuss the market now.
Pixabay
As you all may already be aware of the current market situation, wherever you look in the market, you can see red flags, whether it's the crypto market or the stock market, there is always some bad news to hear. First, there were reports of irregularities in exchanges, such as FTX or some Indian exchanges , and the separate war between Binance and SEC. And now, there is news about one of the biggest banks in the USA, the Silicon Valley Bank, which has caused a commotion in the entire market due to a significant drop.It has had a profound impact on the entire market, decline is being seen everywhere.because of this one of the stable coins, USDC, has experienced an unexpected drop of about 17% from its regular market price. Although it has stabilized somewhat after this drop, there is still a drop of 8-10% in its price.
The direct connection between this drop in USDC and the drop in the Silicon Valley Bank is reported as follows. One of the main reasons for this is that the crypto landing platform, BlockFi, suffered a loss of $227 million in uninsured funds in the form of USDC at the Silicon Valley Bank. Another news is that USDC market cap sheds $6B as Circle reveals $3.3B exposure to the Silicon Valley Bank. After this, social media was filled with tweets. However, CZ also tweeted to support not only USDC but also other stable coins. After that, Coinbase also tweeted that they are pausing USDC to USDT conversion on weekends due to bank closures. In such a situation, it is feared that if everything is not okay in USDC by Monday when the banks reopen, there may be a further increase in selling and it may break even more.
In this situation, questions arise regarding the future of stable coins, as negativity regarding stable coins is increasing day by day. The BUSD incident earlier and the recent drop in USDC raise serious concerns about their future. In this situation, imagine if something goes wrong with USDT, the entire crypto market may collapse.
At the end I would like to tell you all to trade cautiously and securely in the market and keep your funds safe....
Thank you....