Major stablecoins experienced temporary decoupling following the price drop in cryptocurrency markets.
The USDC/USDT trading pair, typically known for its stability, witnessed a dramatic de-peg where binancefalling to $0.76 and $0.8 at 20:00 and 20:15 UTC+8, respectively, before stabilizing.
In OKanother popular cryptocurrency exchange, the trading pair fell to $0.955 around the same time.
This incident occurred in the wake of a panic drop in the value of Bitcoin, which caused repercussions throughout the cryptocurrency market.
The main cryptocurrency reacted to a report from a financial services company homeportwhich presented a contrary view on the future of Bitcoin spot. Exchange Traded Funds (ETFs) in the US
The firm, which had previously maintained a bullish stance on Bitcoin, has now predicted that the US Securities and Exchange Commission (SEC) will reject all Bitcoin spot ETF applications in January 2024.
Also read: Bitcoin ETF approval date: Traders bet with 89% probability before January 15
Despite meeting several SEC requirements, Matrixport anticipated that all Bitcoin spot ETF applications would not meet a critical requirement, leading to its rejection by the SEC in January.
The company expected that this requirement could be met in the second quarter of 2024.
Stablecoins like USDC and USDT are pegged to fiat currencies like the US dollar and generally act as a safe haven for traders during times of increased market volatility.
However, the unexpected drop in the value of these stablecoins raises questions about their reliability in maintaining pegs for a long time. extreme market conditions.
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