The post Ethena’s USDe loses peg as investors question confidence in synthetic dollars appeared on BitcoinEthereumNews.com.

Ethena’s synthetic dollar fell off its peg Friday after crashing to $0.65 on Binance, wiping out investor confidence in what was marketed as a stablecoin with yield. The stablecoin, called USDe, is supposed to stick to the value of the U.S. dollar, but then came during a brutal selloff that hit every corner of the crypto market, making all the wrong kinds of history. This happened just minutes after President Donald Trump lashed out at president Xi Jinping by announcing yet another ‘new’ 100% tariff on Chinese exports, triggering a market-wide panic that pushed traders into safe havens like gold and Treasuries, but not crypto. More than $19 billion in long crypto positions were liquidated in less than a day, with over 1.6 million traders getting wiped out, according to data from Coinglass. Trump’s China tirade pulled the rug from under a market already slipping. By Saturday morning, Bitcoin had dropped below $110,000, down over 14% from its all-time high of around $127,600. The pace of the crash overwhelmed exchanges, with Coinglass showing that Binance was only logging one liquidation order per second, so the real damage may actually be far worse than recorded. How amazing is that? Cryptopolitan believes the next support level sits at $100,000, and if that breaks, it could end the bull run that’s lasted nearly three years. Right now, the Bitcoin options market is showing the most put strikes at $110,000, with the next highest at $100,000, so yeah, traders are definitely bracing for deeper pain. The worst is quite literally yet to come. USDe collapses as traders flee risky assets With a market cap of $14 billion, USDe ranks as the third-biggest digital dollar in circulation. Binance, the largest exchange on the planet, confirmed in a blog post that “our team is currently conducting…

---

Filed under: News - @ October 11, 2025 11:13 am