Skip to main content

Citi Report: The Bitcoin & Crypto Liquidity Crisis Is Over

 


Bitcoin could see the proverbial light at the end of the tunnel, at least that's what a major American multinational investment bank says in its latest findings. Several indicators show that the worst of the liquidity crisis in cryptocurrency markets in general may be behind us. This is the conclusion reached by Citi Bank in its most recent study.


Since its peak in November last year, Bitcoin's value has fallen by more than half, causing the entire cryptocurrency market to plummet.


Both Bitcoin and other cryptocurrencies have seen rapid declines that have shocked many investors. The best example is Terra Luna and Terra's stablecoin UST, which have become almost "worthless". Months ago, who would have thought that both cryptocurrencies would experience such a painful crash?


The bitcoin pain is fading

Investors then withdrew their funds from the crypto market, causing Tether (USDT) to lose its peg to the dollar and forcing some of the largest bitcoin companies to lay off a significant number of employees.


The global economic fallout exacerbated the problem, leading to a drop in token prices and a liquidity squeeze. However, there are now numerous signs that the worst is over.


Citi believes that crypto markets are too small and relatively isolated to have an avalanche effect on the financial sector or economy, but they can still impact investor sentiment. The bank's assessment suggests contagion fears have likely peaked, at least temporarily.


Financial analysts recently told CNBC that they are not concerned about the impact of cryptocurrencies on the US economy in general since cryptocurrencies are not associated with debt. According to University of Toronto economist Joshua Gans:


“People rarely use cryptocurrencies as collateral for debt in the real world. Otherwise it's just a waste of paper. Therefore, this issue is not on the list of economic concerns.”


“Stablecoin and ETF outflows are showing early signs of stabilization, and Coinbase's discount has also returned to normal,” Citi said.


No threat to the economy

At $990 billion compared to the US stock market's $34 trillion, cryptocurrencies are too small to significantly impact financial markets, according to Citi's analysis.


This assessment is similar to that of Buda.com's Diego Vera, who noted that Bitcoin has historically gone through numerous cycles and has always 'recovered with force'.


FTX CEO Sam Bankman-Fried admits the disaster was "substantially worse" than he anticipated. According to a Reuters report on July 7, the 30-year-old billionaire believes the worst of the liquidity turmoil is over despite the ongoing crypto winter.


My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin...
Post a Comment
Read more

Phishing attack on popular crypto sites tries to empty wallets

  Several major crypto sites such as Etherscan, CoinGecko, DeFi Pulse, and others report malicious pop-ups scammers use to try to trick users into connecting their MetaMask wallets. The phishing attack came from a domain displaying the Bored Ape Yacht Club (BAYC) logo. "We are investigating the root cause of this attack to fix the threat as soon as possible," CoinGecko founder Bobby Ong tweeted. The phishing attack appears to have been triggered by a malicious ad script from Coinzilla, a crypto ad network, according to CoinGecko. Etherscan also advises its users not to confirm any transactions that may appear on the website. The attackers attempted to use the hype around the “bored monkeys” non-fungible tokens (NFT) to gain access to the cryptocurrencies of unsuspecting website visitors. Although the websites affected by the scam attempt have reacted in the last few hours and deactivated the advertising pop-up, it is still recommended not to connect your MetaMask wallet to ne...
Post a Comment
Read more

Bored Ape Yacht Club NFTs stolen through phishing on Instagram

  Bored Ape Yacht Club ( BAYC ) developers announced on Monday that hackers have hijacked the official Instagram page of the popular NFT collection and posted links to a fake airdrop. Crypto enthusiasts who connected their MetaMask wallet to the rogue website subsequently had their Ape NFTs stolen. Apparently, the attack was planned to coincide with the one-year anniversary of the BAYC collection. This increased the "perceived credibility" of the phishing link. About 100 NFTs are said to have been stolen in the phishing attack . According to CoinGecko data , the minimum price for a BAYC NFT is 139 Ether ( ETH ) or $400,726. So if reports are correct, over $40 million worth of NFTs were stolen in the attack. These numbers are only the lowest estimate, however, as they are based on the lowest price.  At the time of writing, it was still unclear how the hackers gained access to BAYC's official Instagram account. Social media users have pointed out the importance of two-fact...
Post a Comment
Read more