Waves of stablecoin-to-fiat conversions and outflows of funds from crypto-ETFs have subsided, and the spread of stETH to ETH has narrowed. Citigroup analysts saw this as a sign of the end of the panic in the market, writes CoinDesk.
According to experts, a positive role was played by the decrease in uncertainty regarding the volume of mutual risks of players in the industry after the start of the reorganization of some of them.
In May-June, “liquidity stress” led to some “intramarket imbalances,” experts noted.
One of them was the price discrepancy between bitcoin in US dollars on Coinbase and in USDT on Binance. In normal times, the former tends to exceed the latter, reflecting institutional demand. Only recently has the discount been replaced by a premium again.
The conglomerate's strategists stressed that the cryptocurrency markets are still small in size to cause serious side effects on traditional financial markets and economies. They acknowledged that one way or another, the dynamics of digital assets has an impact on investor sentiment.
Recall that in November 2021, it became known about Citigroup's plans to launch a digital assets division for institutionals. Prior to this, a similar group was created in the structure of the asset manager Citi Global Wealth Investments.
In June 2022, the institution selected infrastructure company Metaco as a launch partner for the custodial platform.
Earlier, JPMorgan analysts cited growing interest in Ethereum in the lead-up to PoS transition as one of the reasons for the recovery of the cryptocurrency market.
The Merge: what to expect from Ethereum's biggest update
Prior to this, the bank's strategists suggested that the worst for the digital asset market is over.
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