Stablecoin USDC lost 3 pegs today on Binance, hitting lows of $0.74

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Circle’s USDC dollar-pegged stablecoin fell to $0.74 on three separate occasions today after a report raised doubts that a spot ETF would be approved this month, triggering a market-wide sell-off.

Between 19:10 and 19:21 Vietnam time, USDC experienced three drops compared to the USDT trading pair on Binance, to $0.74, $0.8 and $0.79; in all three cases the price immediately returned to $1 . This happens when a trader sells USDC for USDT and there is not enough liquidity to maintain the $1 peg.

Source: TradingView

According to data from CoinMarketCap, the 2% market depth of the USDC/USDT currency pair on Binance is skewed upward, with stacking orders of $26 million rising to $1.02 and stacking orders of $6.1 million decreasing to $0.98. This means that when traders place sell orders over $6.1 million, the price will drop below $0.98. Volume was $6.2 million at 7:10 pm and $4.3 million at 7:21 pm (Vietnam time).

More than $500 million in derivatives positions have been liquidated following a Matrixport report predicting that the SEC will reject several Bitcoin spot ETF applications this month.

Notably, the pair has experienced some minor pullbacks over the past few months, but has not gained more than 4% in either direction.

The last time USDC lost its peg was after the collapse of Silicon Valley Bank in March, when news broke that Circle was partially backing stablecoins held by the bank, and USDC was trading at $0.86.