Crypto: The biggest bullish cycle is coming!

The signals are green for cryptocurrencies! According to a report by Bernstein, the digital asset market is in the middle of a bullish cycle, supported by a favorable macroeconomic environment. This means investors are more motivated than ever.

FTX, the catalyst for a new bull run according to Bernstein

As you know, cryptocurrencies like Bitcoin are subject to the law of supply and demand. That’s why its value has never been stable. If buyers outnumber sellers, the price of the asset rises. On the other hand, if there are more sellers, the price goes down.

However, external factors such as major geopolitical events (such as wars or economic crises), monetary policies, regulations, etc. also influence the market.

According to Bernstein’s report released on Monday, the rise of FTX has been one of the catalysts for a new bullish cycle to emerge in the crypto market.

According to the brokerage firm’s report, the disappearance of FTX has brought order to trading by cleaning up the last of the “toxic crypto leverage.” In addition, it taught digital asset investors the importance of decentralization and self-custodial portfolios.

Macro-catalysts line up in favor of bitcoin and ether’s rise

According to Bernstein’s report, investors don’t yet fully understand the new cycle. But, several positive factors are combining to support the rise of bitcoin and ether.

Firstly, it should be noted that macro-catalysts, such as the weakness of the US banking system, are a godsend for bitcoin. Indeed, the collapse of four major U.S. banks has strengthened bitcoin’s position as a safe asset.

To quote analysts Gautam Chhugani and Manas Agrawal, “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.”

Secondly, successful upgrades to the Ethereum blockchain, such as the Shapella fork, have boosted investor confidence. Finally, Ethereum’s scaling products, such as Arbitrum, have seen increasing success.

These various positives point to a new bull run for cryptocurrencies. Some analysts are even predicting a bull run, with optimistic forecasts placing the value of bitcoin at $100,000. 

Regardless, since the beginning of the year, bitcoin has already risen by 80%. In addition, the fragility of the American banking system has also contributed to its publicity. Its price has risen by 32% since last March. So let’s keep a close eye on the evolution of this ever-changing market.