The collapse of crypto exchange FTX derailed an emerging positive situation in cryptocurrency markets after the significant deleveraging of May and June left few, if any large, marginal sellers in the digital assets space, Coinbase (COIN) said in a research report Tuesday.

The new turbulence in the cryptocurrency market and the lack of large buyers has left the sector vulnerable, potentially extending what was an already long crypto winter, analysts David Duong and Brian Cubellis wrote.

FTX bankruptcy proceedings will be closely watched, but for the digital assets sector, a lot still depends on the path of interest rates in the U.S, the report said.

(By Will Canny)