Cryptocurrency markets are entering into a new and exciting bullish cycle, according to recent research conducted by Bernstein. The crypto exchange FTX's collapse served as the catalyst, ridding the market of toxic crypto leverage and teaching digital asset investors the importance of decentralisation and self-custody wallets.

As macro catalysts are aligning for Bitcoin, the world’s largest cryptocurrency by market cap, regional banks continue to display weaknesses and deposit outflows move to money markets or big four US banks. Such events position Bitcoin as a safe heaven asset, alongside gold. Prices have already risen by 80% in 2021 so far.

Ethereum’s native token, Ether, has risen by 76% since the beginning of the year, and the highly anticipated Shasper hard fork has already boosted prices by 13%. Blockchain fees have increased threefold since the collapse of FTX.

The current crypto cycle is still yet to be fully appreciated, with a vast variety of positive factors lining up. These include continued macro catalysts, new Bitcoin mining cycles, the continued successful upgrades of the Ethereum blockchain and the success of Ethereum scaling ecosystems such as Arbitrum.

The opportunities to build a new institutional financial stack on the blockchain are endless, with leading institutional investors taking serious interest in terms of long-term investment. As digital assets become increasingly attractive, Bernstein has recommended that investing in cryptocurrency should be part of a disciplined, long-term portfolio strategy.



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