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$USDC **What is USDC?** **USD Coin (USDC)** is a type of **stablecoin**—a cryptocurrency pegged to the value of the US dollar (1 USDC = $1). It was launched in 2018 through a collaboration between **Circle** and **Coinbase** under the Centre Consortium. Unlike volatile cryptocurrencies like Bitcoin or Ethereum, USDC maintains a stable value, making it ideal for payments, trading, and decentralized finance (DeFi) applications.
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**How Does USDC Work?** USDC operates on **blockchain technology**, primarily on **Ethereum** (as an ERC-20 token), but it has expanded to other networks like Solana, Avalanche, and Algorand.
- **Backed by Reserves**: Every USDC in circulation is backed by **cash and short-term U.S. Treasury bonds**, held in reserve by regulated financial institutions. - **Transparency**: Monthly audits by accounting firms (like Grant Thornton) verify that reserves match the circulating supply. - **Smart Contracts**: USDC can be used in DeFi protocols, exchanges, and cross-border transactions with minimal fees.
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**Key Features of USDC** ✅ **Stability**: Pegged 1:1 to the US dollar, reducing volatility. ✅ **Fast & Low-Cost Transactions**: Cheaper and quicker than traditional banking. ✅ **Widely Accepted**: Used in crypto trading, remittances, and DeFi platforms. ✅ **Regulated**: Compliant with U.S. money transmission laws.
Several key factors contributed to today's market decline:
1. **Geopolitical Tensions: Israel-Iran Conflict Escalates** - Israel's airstrikes on Iran heightened Middle East instability, triggering a risk-off sentiment across financial markets. - Crypto assets saw sharp declines, with Bitcoin down ~5% and Ethereum ~10% intraday. - U.S. stock futures fell ~1.5–1.8%, while safe havens like gold and oil rallied.
2. **Macroeconomic & Regulatory Concerns** - Persistent inflation data reinforced expectations that the Fed will delay rate cuts, dampening investor confidence. - Rising U.S.-China trade tensions and potential new tariffs added to global economic uncertainty.
3. **Options Expiry & Leveraged Liquidations** - Over $3.7B in BTC/ETH options expired today, amplifying market volatility. - Crypto liquidations exceeded $1.2B in 24 hours, with long positions bearing the brunt.
4. **Technical Correction & Profit-Taking** - Bitcoin faced resistance near $111K (upper Bollinger Band), leading to a pullback. - Indicators like MACD and RSI signaled overbought conditions, suggesting a short-term consolidation phase.