Bernstein Analysis Report Says Crypto Bull Cycle Is Coming

The well-known analysis establishment Bernstein launched the most recent analysis outcomes on the 2023 Consensus Convention, indicating that the current plunge in FTX has grow to be a catalyst for the beginning of a brand new bull market cycle within the cryptocurrency market.

The closure of cryptocurrency exchanges has successfully eliminated the final vestiges of dangerous leverage from the market, whereas additionally instructing digital asset traders a invaluable lesson concerning the significance of decentralized and self-custodial wallets.

The report additional highlights that as some U.S. banks proceed to wrestle, with deposits flowing into cash market funds and the Huge 4 U.S. banks, the macroeconomic panorama is more and more aligned with bitcoin, the biggest cryptocurrency by market capitalization, reflecting a want for forex focus cultural issues.

The Bernstein analysis report sheds mild on the altering dynamics of the cryptocurrency market, because the current drop in FTX was a major occasion that set the stage for the following section of the bull market cycle.

Because the cryptocurrency market continues to evolve, with new challenges and alternatives rising, traders and merchants are intently analyzing the underlying components driving market tendencies.

In response to Bernstein’s evaluation, the collapse of main cryptocurrency change FTX has had a profound impression in the marketplace.

The shutdown of FTX not solely resulted within the lack of funds for a lot of traders, but in addition marked the tip of an period of extreme leverage within the cryptocurrency market. Extreme leverage has been a reason behind concern for regulators and market contributors, because it poses dangers of market manipulation and systemic instability.

Nonetheless, the shutdown of FTX has now successfully eliminated that danger, because it has eliminated the final remaining supply of dangerous leverage available in the market.