in 2022 cryptocurrency There have been many negative events in the market. The events experienced caused the cryptocurrencies, which were already in a downtrend with the effect of the bear market, to experience harder falls.
In this context, examining the negative events retrospectively, Citibankthe crypto market Terra (Luna) characterized by a series of negative shocks triggered by its collapse.
Stating that the negative events experienced decreased the interest in crypto for both retail and institutional investors, analysts led by Joseph Ayoub wrote:
“During 2022, leverage, volatility and interest declined as investors struggled with falling prices.
As prices fell, retail interest waned drastically. All of this coincided with a more general drop in volatility.”
Cryptocurrency Compared to the stock market, Citi analysts found that the total crypto market cap decreased by 61% amid rising inflation concerns, rising interest rates and tightening financial conditions. S&P 500 index fell 18%.
crypto exchange FTX lending platforms with Celsius and VoyagerArguing that the bankruptcies of Citibank are the failures of centralized institutions rather than decentralized institutions, “We expect a broader focus on decentralization in 2023 after failures in centralized crypto initiatives this year.” said.
Moreover stablecoinEmphasizing that the coin has a market value of over $150 billion, the bank said that investors trust different stablecoins.
As an example of this “The largest stablecoin by market value Tether (USDT) losing $10 billion in market value, USD Coin (USDC) market value remains constant, Binance USD (BUSD) market value rises” showed.
Finally, Citibank stated that despite falling crypto prices, spot trading volumes remained stable after FTX’s bankruptcy. decentralized exchange (DEX) said volumes have increased.
Analysts on FTX’s bankruptcy “FTX’s bankruptcy further supported policy makers’ calls for cryptocurrency regulation and placed greater emphasis on consumer protection.” said.
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