Observing $USDC trading around 0.99977 today. While minor, it's consistent. Are we seeing lingering effects from last year's banking crisis, or is it more a reflection of current market liquidity/demand for collateral? Interested in technical analyses.
I think it's mostly market mechanics. When you have large redemptions or big collateral movements, even highly liquid assets like USDC can see tiny, temporary deviations. It's not necessarily a systemic issue.
It's likely a mix of both. Lingering FUD from last year definitely impacts sentiment, but the slight deviations could also be tied to specific institutional flows or large redemption windows creating minor imbalances.
Could it also be related to the yield curve and arbitrage opportunities? A tiny deviation can still be profitable for large players if they have access to the right funding rates.