Crypto trading firm Cumberland said that the speed of the crypto market's recovery will depend on how quickly distressed assets can be transferred from troubled companies to more secure ones.
The firm noted that the assets belonging to these companies will have to be liquidated in order to offset outstanding liabilities — and this is having a big impact on crypto prices.
“Uncertainty around the size and timing of these asset sales is hanging over the market like a cloud,” the firm said on Twitter.
As a result of the constrained market outcomes, a host of crypto companies have come under severe pressure. On June 12, a month to the day after Terra’s collapse began, crypto lending platform Celsius halted withdrawals for its customers. Other lenders have since followed suit in limiting …