The signals are green for cryptocurrencies! According to a report by Bernstein, the digital asset market is in the middle of a bull cycle, supported by favorable macroeconomic conditions. Investors are therefore more motivated than ever.
FTX, the catalyst for a new bull cycle according to Bernstein
As you know, cryptocurrencies like Bitcoin are subject to the law of supply and demand. This is why their value has never been stable. If the buyers get the upper hand over the sellers, the price of the asset goes up. On the other hand, if there are more sellers, the price appreciates.
However, external factors such as major geopolitical events (such as wars or economic crises), monetary policies, regulations, etc. also influence the market.
According to the report from Bernstein published on Monday, the advent of FTX has been one of the catalysts for a new bull cycle looming in the crypto market.
According to the brokerage company’s report, the disappearance of FTX has helped to restore order in trading by cleaning up the last slice of ” the toxic crypto leverage“. Additionally, she taught digital asset investors the importance of decentralization and self-conservative portfolios.
Macro Catalysts Align for Bitcoin and Ether Rise
According to Bernstein’s report, although investors do not yet fully understand the new cycle, several positive factors are conspiring to support the rise of Bitcoin and Ether.
First, it should be pointed out that macro catalysts, such as the weakness of the US banking system, are a boon for Bitcoin. Indeed, the fall of four major US banks has bolstered Bitcoin’s position as a safe-haven asset.
In the words of analysts Gautam Chhugani and Manas Agrawal, “any potential dislocation in bank or sovereign credit puts Bitcoin neatly in the safe-haven asset category, on par with gold.”
Second, successful Ethereum blockchain upgrades, such as the Shapella fork, have boosted investor confidence. Finally, Ethereum scaling products, such as Arbitrum, have seen growing success.
These various positive elements presage a new bullish cycle for cryptocurrencies. Some analysts are even prophesying a Bull Run, with bullish forecasts that put the value of Bitcoin at $100,000.
Anyway, since the beginning of the year, Bitcoin has already increased by 80%. In addition, the fragility of the US banking system also helped publicize it. Its price has thus appreciated by 32% since last March. So let’s keep a close eye on the evolution of this constantly changing market.
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