A lot has happened in crypto land again! From stablecoins diving below $1, to hopes for a speedy ruling in the XRP lawsuit. Did you miss some of the crypto news this week? No problem. In this Rewind you will find the biggest and most interesting news summarized.
Panic: USDC stablecoin loses link with dollar
The biggest news this week was undoubtedly the collapse of the great American Silicon Valley Bank (SVB). Circle, the issuer of the second largest stablecoin USDC, has significant exposure to SVB, which collapsed last week. As a result, USDC lost its peg to the US dollar and dropped below USD 0.90. Circle has $40 billion in reserves for USDC, and the $3.3 billion deposited with SVB represents a significant portion of those reserves. Circle reported that before the bank’s collapse, it attempted to withdraw the USDC, but was unsuccessful. The company stated that it will use company resources to cover any losses if necessary.
Following the news, many investors sold their USDC, causing its value to fall by more than 10%. USDC, which should be pegged to the US dollar, fell as low as $0.87 on some crypto exchanges. The value of the coin has since risen again.
Ripple verdict in XRP lawsuit could drop soon
Then the XRP news. Ripple has been embroiled in a legal battle with the US Securities and Exchange Commission (SEC) for more than two years. But according to Ripple attorney John Deaton, the wait may soon be over. Deaton is representing the XRP community in the lawsuit and believes a decision could be reached within weeks.
Another Ripple attorney, James K. Filan, shares this belief, saying Judge Analisa Torres is known for making quick decisions. If the judge decides in favor of Ripple, XRP could receive a major boost. However, if the SEC wins, that would be a bearish scenario for XRP.
Many bitcoins flow away from exchanges
On March 8, approximately 10,000 BTC was withdrawn from all crypto exchanges, according to data from CryptoQuant. This could be a sign that whales (major investors) may buy BTC. The relevant indicator used is the exchange net position changewhich measures the net amount of bitcoin going in or out of centralized exchange wallets.
A negative reading means more BTC has been withdrawn from exchanges, which is generally positive as investors hold onto bitcoin for the long haul. The open interestswhich measures the total number of futures contracts currently open on derivatives exchanges, rose slightly on March 8, suggesting that the withdrawals likely came from spot exchanges.
This article was created with the help of AI. For this article, the editor-in-chief worked closely with AI to obtain the best factual information. The editor-in-chief asked specific questions and checked the answers of the AI, supplemented them for relevance and corrected inaccuracies where necessary.