Terra's collapse is unlikely to put the wider financial system under pressure. Cryptocurrency markets have been under pressure in the past week following the collapse of the third-largestThe fall in crypto markets took place against the backdrop of already weak risk assets, and Citi says it does not expect a broader economic fallout because the digital-asset market is still relatively small compared with traditional asset classes and the make-up of household wealth.
The analysts said they saw no apparent “lead effect” from bitcoin to S&P 500 index futures. The recent weakness in bitcoin and equities appears “contemporaneous,” according to the report. Still, given the existing poor sentiment in equities, the fall in crypto markets doesn’t help, it said. Bitcoin is expected to remain highly volatile, and is influenced by many factors including potential regulatory action, the report added, noting that theThe bank sees production costs as a floor because below these levels it is “less economical for mining, which may lead to a decline in hash rates, and an adjustment in algorithm difficulty to keep the bitcoin mining reward rate constant.
Citi willcanny99 recession will do that, not to worry
Citi willcanny99 I'd like to know how many people use crypto exchanges like BFX and others