The crypto market is fueling up for the latest directional move in the coming weeks. Meanwhile, overall crypto market capitalization experienced a latest 2023 high of $1.26 trillion last week, spreading positive circumstances among investors.
The collapse of the former largest cryptocurrency exchange- FTX appeared to act as a catalyst for another latest bullish trend in the emerging cryptocurrency market, according to news from global investment management firm Bernstein.
The fall of FTX put an end to the last wave of toxic crypto leverage in the market. Now investors of digital assets are aware of the need for decentralization and the importance of self-custody wallets.
Bernstein’s report also noted that macro catalysts have been created following the rally in the largest cryptocurrency bitcoin over the past few weeks. On the other hand, after the collapse of well-known and largest banks in the United States such as Silicon Valley Bank, Signature Bank, and Silvergate Bank, warnings about the ‘centralization of money’ are reflected as deposit outflows into money market funds increase.
Also Read: Crypto Market to Take a Hit Before Big Pumps
Analysts like Gautam Chugani and Manas Agarwal at Bernstein emphasized in a report that, “any potential dislocation, whether on the bank’s credit side, or on the sovereign side …positions bitcoin perfectly as a safe haven asset alongside gold,”
Bitcoin, the leading cryptocurrency, just reached a 10-month high of $31,000 and has gained more than 80% in the previous six months. Similarly, Ethereum, the second-largest cryptocurrency, finished its much-anticipated upgrade known as the Shapella upgrade last week, causing the ETH price to climb by about 16% in April and investors to enjoy more than 75% returns over the previous 6 months.
However, the fees for the Ethereum blockchain have increased by 3 times. But Bernstein claims that the new crypto cycle is still not fully understood, despite several favorable developments such as the new bitcoin mining cycle, the Shapella upgrade, and the Ethereum scaling ecosystem with Arbitrum.
The report suggests that the crypto industry may see the participation of major institutional investors in the upcoming crypto cycle. And further he added “the opportunity to build a new institutional financial stack on the blockchain remains a worthy goal, and serious participants remain focused on the long term.”
