Famend analysis establishment Bernstein launched the newest analysis outcomes on the 2023 Consensus Convention, indicating that the current fall of FTX has turn out to be a catalyst for the beginning of a brand new bull market cycle within the cryptocurrency market. .
The shutdown of cryptocurrency exchanges has successfully eliminated the final vestiges of dangerous leverage from the market, whereas educating digital asset buyers 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 macro panorama is more and more aligned with bitcoin, the biggest cryptocurrency. foreign money by market cap, reflecting a need for cultural foreign money focus. considerations.
The Bernstein analysis report sheds gentle on the altering dynamics of the cryptocurrency market, because the current drop in FTX was an essential 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, buyers and merchants are intently analyzing the underlying components driving market traits.
In line with Bernstein’s evaluation, the collapse of main cryptocurrency change FTX had a profound influence in the marketplace.
The shutdown of FTX not solely resulted within the lack of funds for a lot of buyers, but additionally marked the top of an period of extreme leverage within the cryptocurrency market. Extreme leverage has been a supply of concern for regulators and market members, because it poses dangers of market manipulation and systemic instability.
Nonetheless, the closure of FTX has now successfully eradicated this threat, because it eliminated the final remaining supply of dangerous leverage out there.
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