According to analysts at Bernstein Private Wealth Management, Bitcoin has brighter days ahead. They argue that the banks’ losses are Bitcoin’s gain.
Bernstein Analysts pridect That the US banking crisis could be the catalyst that finally pushes Bitcoin into mainstream adoption. According to analysts, the banking problems will fuel a “new crypto cycle.” One is driven by an exodus to self-custodial wallets.
“The safe haven signal will trigger a new cycle for digital currencies, driving digital wallets as on-chain savings accounts,” Gautam Chogani and Manas Agrawal, analysts at Bernstein, said Wednesday, in a note seen by CNBC. “The gap between Treasury rates and bank deposit rates will continue to empty banks, with weakening balance sheets leading to another round of exodus into the money markets.”
They added, “To save the ship, the Federal Reserve will have to resort to dollar devaluation and money printing again, which restores Bitcoin’s role as digital gold.”
Bitcoin is up 75% this year
Both analysts believe that 2023 will be the year of hyper-expansion and self-custodial portfolio growth. As well as the adoption of decentralized finance by individual and institutional participants.
Bernstein was previously confident about the prospects for cryptocurrencies. Earlier this month, the company suggested that the collapse of FTX led to the recent rally in the cryptocurrency markets.
Its analysts aren’t the only ones feeling optimistic. Cryptocurrency investors have generally had a positive 2023 so far. Bitcoin price is trading at around $29,000, which is roughly 75% up from the start of the year. Optimistic voices are rising, though cautiously tempered about asset volatility.
Earlier this week, a researcher at Standard Chartered claimed that the market lull, known as the “crypto winter,” is over. Jeff Kendrick, Head of Digital Asset Research at Standard Chartered, has predicted that Bitcoin will reach $100,000 by the end of 2024.
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