According to the latest research report from Bernstein, an investment research institution, the FTX bankruptcy incident is the catalyst for a new bull market cycle in the cryptocurrency market. The collapse of FTX cleared the last part of harmful cryptocurrency leverage and taught digital asset investors the importance of decentralization and self-custody wallets.
The report added that the macroeconomics is aligning with Bitcoin, the largest cryptocurrency by market capitalization, and the continued weakness of some U.S. banks and the further flow of deposits to money market funds and the four largest U.S. banks all reflect concerns about monetary concentration. "Any potential dislocation, both in terms of bank credit and sovereign, perfectly positions Bitcoin as a safe-haven asset like gold."
According to Bernstein, the new crypto cycle remains underappreciated, with many positive factors to follow, including macro catalysts, the Bitcoin halving, continued successful upgrades to the Ethereum blockchain, and the success of Ethereum extension ecosystems such as Arbitrum. "The opportunity to build a new institutional financial system on the blockchain remains a worthy goal, and serious players remain focused on the long term," the report said, adding that this will be "the first crypto cycle with participation from leading institutional investors." (CoinDesk)