Waves of conversion of stablecoins to fiat and the outflow of funds from crypto ETF faded away, and spread stETH to ETH decreased. Citigroup analysts saw this as signs 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 “intra-market imbalances,” experts noted.
One of them was the discrepancy between the price of 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 Only recently the discount has again been replaced by a premium.
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 the plans of Citigroup run division of digital assets for institutionals. Prior to this, a similar group created in structure Asset Manager Citi Global Wealth Investments.
In June 2022, the institution chose infrastructure company Metaco as a launch partner for the custodial platform.
Earlier, JPMorgan analysts called the growing interest in Ethereum in anticipation of the transition to PoS as one of the reasons for the recovery of the cryptocurrency market.
Prior to this, bank strategists assumedthat the worst for the digital asset market is behind us.
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