The famous research institution Bernstein released the latest research results at the 2023 Consensus Conference, indicating that the recent plunge in FTX has become a catalyst for the start of a new bull market cycle in the cryptocurrency market.
The closure of cryptocurrency exchanges has effectively removed the last vestiges of harmful leverage from the market, while also teaching digital asset investors a valuable lesson about the importance of decentralized and self-custodial wallets.
The report further highlights that as some U.S. banks continue to struggle, with deposits flowing into money market funds and the Big Four U.S. banks, the macroeconomic landscape is increasingly aligned with bitcoin, the largest cryptocurrency by market capitalization, reflecting a desire for currency concentration cultural concerns.
The Bernstein research report sheds light on the changing dynamics of the cryptocurrency market, as the recent drop in FTX was a significant event that set the stage for the next phase of the bull market cycle.
As the cryptocurrency market continues to evolve, with new challenges and opportunities emerging, investors and traders are closely analyzing the underlying factors driving market trends.
According to Bernstein’s analysis, the collapse of major cryptocurrency exchange FTX has had a profound impact on the market.
The shutdown of FTX not only resulted in the loss of funds for many investors, but also marked the end of an era of excessive leverage in the cryptocurrency market. Excessive leverage has been a cause of concern for regulators and market participants, as it poses risks of market manipulation and systemic instability.
However, the shutdown of FTX has now effectively removed that risk, as it has removed the last remaining source of harmful leverage in the market.