2023-04-19 13:10:10
© Reuters Biggest Crypto Bull Cycle Is Coming, Says Analyst
CriptoFácil – The collapse of the FTX exchange was the starting point for a new bull cycle in the cryptocurrency market, according to a Bernstein research report released this week.
According to the company, the demise of FTX eliminated the last part of “toxic crypto leverage”. This has taught digital asset investors the relevance of decentralization and self-custodial wallets.
The report also highlights that macroeconomic catalysts are lining up in favor of the . Thus, this next bull cycle should be even bigger than the previous one in 2020/21.
“Continued weakness in US regional banks and recent outflows of deposits to money market funds and the four largest US banks reflect concerns about the centralization of money,” the report highlights.
Analysts Gautam Chhugani and Manas Agrawal state that “any potential dislocation, whether on the bank credit side or the sovereign side, positions Bitcoin perfectly as a safe haven asset next to gold.”
In 2023, Bitcoin accumulates an appreciation of 80%, with an increase of 23% in March alone, amid several US bank failures.
Cryptocurrency bull cycle
At the same time, held the expected Shapella hard fork last week. The update allowed users to stake and withdraw assets at will. After the upgrade, Ether appreciated by 13%, boosting the broader market.
Furthermore, the report points out that the Ethereum blockchain fees have tripled. This reflects, according to the company, “increasing user intensity and token prices, post FTX.”
Bernstein believes that the new cycle is not yet fully understood. And that is precisely why it will be higher than the previous one, as there are other factors driving the rise.
“Considering the various positive factors aligned, such as macroeconomic catalysts, a new Bitcoin mining cycle, successful upgrades of the Ethereum blockchain and the success of Ethereum scaling ecosystems such as Arbitrum, this bull cycle will be huge”, he points out.
The document underscored that the opportunity to build a new institutional financial system on blockchain remains a worthy goal. In this regard, serious participants in the cryptocurrency market remain focused on the long term.
Finally, Bernstein emphasized that this will be the first cryptocurrency bull cycle that will be attended by leading institutional investors.
#Biggest #bull #cycle #cryptocurrencies #coming #analyst #CriptoFácil