Bernstein predicts crypto dominance: FTX’s fall paves the way for Bitcoin and Ethereum explosion

The collapse of FTX FTT/USD has been a driving force behind a new surge in the cryptocurrency market, according to a recent analysis by Bernstein.

The report released on Monday explained how the downfall of the cryptocurrency exchange eliminated the latest wave of “harmful crypto influence” and educated digital asset investors on the importance of decentralization and self-custodial wallets, Coindesk reported.

Bernstein’s research also highlighted the favorable macro factors that are aligned Bitcoin BTC/USDthe largest cryptocurrency by market capitalization.

These include ongoing struggles in US regional banks, rising deposit outflows against money market funds, and the big four US banks, all of which emphasize concerns about the “centralization of money.”

Analysts Gautam Chhugani and Manas Agrawal wrote: “Bitcoin is ideally positioned as a safe haven alongside gold, in the event of potential dislocation, whether on the bank’s credit side, or on the sovereign side.”

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So far this year, Bitcoin has seen an 80% increase, with a 23% jump in March as more bank failures occurred in the US

Meanwhile, Ethereum’s native token Ether, ETH/USDhas risen 76%.

Ethereum successfully executed the long-awaited Shapella hard fork last week, allowing users to stake and unstake Ether at will.

After the upgrade, Ether rose by 13%, boosting the overall market.

The Bernstein report also mentioned that Ethereum’s blockchain fees have tripled, indicating “growing user intensity and token prices, following FTX.”

The analysts believe that the current crypto cycle remains undervalued, with several positive factors at play, such as macro catalysts, a new Bitcoin mining cycle, ongoing successful Ethereum blockchain upgrades, and the triumph of Ethereum scaling ecosystems such as Arbitrum.

The study concluded by arguing that constructing a new institutional economic framework on the blockchain is still a valuable job.

The analysts stated, “Serious participants remain focused on the long term,” adding that this will be the “first crypto cycle that will see participation from leading institutional investors.”

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