Opinion: USDC's fate may depend on whether Silicon Valley Bank can be acquired
Author: @wildPiPiLu Editor: Colin Wu At 7:42 pm (Beijing time), USDC/USDT declined around -9.58% in one day. It is still difficult to judge that this is the endpoint of decline, but from a technical perspective, a bullish candlestick at 4 pm boosted market sentiments and suggested that more and more people are forming a consensus — after the market access to the news of 3.3 billion losses, USDC did not fall into a death spiral like UST. Unlike the collapse of UST, USDC’s collateral is mainly composed of risk-free assets, which may account for the reason why it can still survive till now. According to the contemporary reserves of $43.2 billion, cash reserves reached $9.8 billion, and although it may face a loss of $3.3 billion, there are still at least $6.5 billion in cash reserves. This implies that despite being confronted with the potential loss of one-third of its cash reserves, Circle still has enough funding to handle the redemption wave of $2 billion in the past 24 hours. Accordi...