The S&P 500 gained almost 6% last week, whereas bitcoin fell by about 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 with traditional markets, the report added.
The bank notes that decentralized exchanges’ volumes have surged as much as 30% so far this month, increasing market share over centralized exchanges such as FTX, “amidst centralized custody fears.”
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