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.
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.
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.
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.