I believe the single biggest reason for the 2.79% drop is institutional de-risking ahead of this Friday's highly anticipated August Non Farm Payrolls report.
Asset managers are trimming tech linked winners to build up cash reserves, refusing to carry over-leveraged long positions into a major economic release.
Circle is also sensitive to short term US Treasuries backing the USDC too.
The reality is the recent rebound is built on solid moats. Circle has received conditional approval for a federal national trust bank charter. This will allow Circle to graduate to a fully compliant financial institution.
Exciting times are ahead for Circle.
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- peepzyΒ·09-02 18:23I don't buy the payrolls-only explanation. The bigger risk is USDC reserve duration getting repriced if short-end yields stay jumpy.LikeReport