Categories: Bitcoin Latest News

Citi: Correlation Between Equity Markets, Bitcoin Weakens Following FTX Collapse

Decentralized exchanges have gained market share as confidence in their centralized equivalents declined, the report said.Read MoreCoinDesk

There has been a clear weakening of the correlation between the S&P 500 equity index and bitcoin (BTC) as crypto markets suffer after the FTX and Alameda collapse, Citi (C) said in a research report last week.

The S&P 500 gained almost 6% last week, whereas bitcoin fell around 20%.

Traditional financial markets have been largely unaffected by the collapse, in an indication that “contagion effects are relatively siloed within crypto,” the report said.

Given the magnitude of the fallout it’s not yet certain if contagion into other asset classes has been avoided, but the digital asset sector remains relatively small compared to traditional markets, the report added.

The bank notes that decentralized exchanges’ (DEXs) volumes have surged as much as 30% month-to-date, increasing market share over centralized exchanges (CEXs) such as FTX, “amidst centralized custody fears.”

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Recent Posts

Strategy (MSTR) Stock Craters 10%, Hits Two-Year Low as Bitcoin Crashes Below $60K, CryptoQuant Warns Company to Stop Buying

Bitcoin Magazine Strategy (MSTR) Stock Craters 10%, Hits Two-Year Low as Bitcoin Crashes Below $60K,…

9 hours ago

Bitcoin Price Collapses to $59,000 — and the Worst May Not Be Over

Bitcoin Magazine Bitcoin Price Collapses to $59,000 — and the Worst May Not Be Over…

9 hours ago

Bitcoin falls to $60,000 as AI trade continues to draw investor interest and capital

South Korean memory chip giant on Wednesday filed to raise nearly $30 billion in a…

11 hours ago

BlackRock Says 1% To 2% Bitcoin Allocation Is Reasonable For Traditional Portfolios

TL;DR BlackRock says a 1% to 2% Bitcoin allocation can be reasonable in a multi-asset…

12 hours ago

Bitcoin just broke below the floor of its famous Rainbow Chart into the ‘BTC is dead’ zone

A 50% drop from recent highs has pushed the asset into a zone historically labeled…

13 hours ago

Bitcoin Price Crashes Toward $61,000 as Bloodbath Engulfs Crypto Stocks

Bitcoin Magazine Bitcoin Price Crashes Toward $61,000 as Bloodbath Engulfs Crypto Stocks Bitcoin price is…

13 hours ago