There are various brokers as well as makers of the market that are exposing disclosures that are counterparty. In Chapter 11 Celsius Network has filed for bankruptcy. They have also staked ether that’s returning towards parity. It is also likely that dears related to a crypto contagion have peaked within the interim time. This is according to research that was released on Wednesday.
The End Of The Crypto Virus
Some of the liquidity stress seems to have passed. This can be seen through the staked discount to ether, which has now narrowed. The phase of acute deleveraging has now come to an end. As a result, many market makers as well as large brokers have ended up disclosing what their exposures are.
Another positive sign is that outflow of stablecoins has been stemmed. Citi said that outflows from exchange traded funds based in cryptocurrency also appear to have stabilized. The leverage of exchange as well as futures is also now benign, according to the bank. There was volatility within the crypto markets in May as well as June. This resulted in various dislocations that were intra-market.
One of these dislocations was the difference between the price of bitcoin on Coinbase, compared to the price on Binance, which is their rival exchange. According to Citi, crypto markets are too small as well as isolated, in order to have effects that spill over into the general financial markets within the economy. However, they can still affect the sentiment of the investors.