Citi said in a research report Wednesday that multiple brokers and market makers have made risk disclosures for counterparties, with Celsius filing for Chapter 11 bankruptcy and returning staked Ethereum (stETH) to parity. cryptocurrency He said that fears of the crisis are likely to have peaked.
Citi Announces Reducing Stress on Cryptocurrency Market
Staked Ethereum (stETH) to Ethereum (ETH) Stating that the gap to the market has narrowed, indicating that some of the liquidity stress may have passed, the report added that the “severe leverage reduction phase” is now over, given that many of the major brokers and market makers in the industry have announced their risks.
In another positive sign, the bank said exits from stablecoins have been halted and exits from crypto exchange-traded funds (ETFs) have also stabilized in recent weeks. He added that stock market and futures leverage is also “moderate.”
Citi noted that volatility in the cryptocurrency market in May and June caused a series of “market turmoil.” According to the company, these included the difference between Bitcoin’s price display in US dollars on the Coinbase exchange and the Tether display of rival exchange Binance.
The note states that the Coinbase price is normally advantageous, which may reflect new entrants or institutional demand, but the price began to decline in May. He also added that this “Coinbase price advantage” is now back towards historical levels, which indicates that the stress in the crypto market has eased.
*Not investment advice.