The waves of stablecoin-to-fiat conversions and the outflow of funds from crypto-ETFs have subsided, and the spread of stETH to ETH has narrowed. Analysts at Citigroup 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 some of them started reorganizing.
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 USDT on Binance. Usually, 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 Only recently the discount has again been replaced by a premium.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 have an impact on investor sentiment.
Recall that in November 2021, it became known about Citigroup’s plans to launch a digital assets division for institutional. Before 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 the growing interest in Ethereum ahead of the transition to PoS as one of the reasons for recovering the cryptocurrency market.