#WhiteHouseCryptoSummit

Several factors are currently affecting the price of USD Coin (USDC), including:

SVB Crash: In March 2023, USDC holders suspected potential consequences from the Silicon Valley Bank (SVB) crash and quickly redeemed over $1 billion of USDC for U.S. dollars, causing the USDC market capitalization to drop to the lowest point over the past year.

Depegging Risk: Deviation from the pegged value is one of the most significant risks for stablecoins, including USDC.

Regulatory Scrutiny: USDC's plunge comes as the stablecoin sector has been severely tested by increasing regulatory scrutiny.

Circulating Supply: As the supply of a stablecoin decreases, its scarcity may result in increased demand from investors and traders. If the demand for USDC remains high, it could lead to an increase in price.

US Financial Risks: Circle's CEO Jeremy Allaire has signaled that risks in the US are impacting USDC's stability, as investors push to "de-risk out of the US" amid concerns about the country's financial risks.

Supply and Demand Dynamics: The supply and demand dynamics of USDC are the same as any other cryptocurrency, thus creating prices higher or less than $1 at any given time.