USDC fell to about $0.87 in March 2023 with roughly 92% of its reserves untouched. The reserves were not the problem. The door to them was.
On 11 March 2023, USDC traded near $0.87. Circle had disclosed that about $3.3 billion of its roughly $40 billion in reserves sat at Silicon Valley Bank, which regulators had just seized. Around 92% of the backing was fine. The coin still lost thirteen cents, because a stablecoin's price is not its backing β it is the market's estimate of what the backing is worth and how fast you can get at it.
β Educational, not financial advice.