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The Biggest Crypto Bull Cycle Is Upon Us
Bernstein, a prominent brokerage firm, recently released a report claiming that the biggest crypto bull cycle is upon us. The report suggests that several macro catalysts are lining up for Bitcoin, the world’s largest cryptocurrency by market cap. The report also attributes FTX’s collapse as the catalyst for a new bullish cycle in cryptocurrency markets. In this article, we’ll take a closer look at the report and explore the factors driving the current crypto bull cycle.
The Collapse of FTX
According to Bernstein’s report, FTX’s collapse played a crucial role in the current bullish cycle in cryptocurrency markets. FTX, a cryptocurrency derivatives exchange, experienced a system-wide outage in early 2021 due to heavy traffic. The incident led to massive losses for traders, including several institutional investors.
However, Bernstein suggests that FTX’s collapse was a necessary event that helped clean up the final tranche of “toxic crypto leverage.” The report further states that the incident taught digital-asset investors the importance of decentralization and self-custody wallets. In other words, the collapse of FTX highlighted the risks associated with centralized exchanges and the need for self-custody solutions.
