Bernstein’s analysts predict the growth of the crypto market after a series of bank crashes
The broker’s experts believe that decentralized finance can become an alternative to traditional markets
20.03.2023 - 15:30
218
2 min
0
Financial markets have been shaken in the past week following a series of bank collapses, providing a perfect setting for the decentralized-financial system to stand out as an alternative and for a continued advance in cryptocurrency markets, Bernstein said in a research report Saturday.
First Republic Bank’s (FRC) deposit rescue package by multiple institutions should make it obvious that this is a “generic banking problem” and crypto isn't to blame, the report said, noting that initial reactions to the collapse of of Silvergate Bank, Silicon Valley Bank and Signature Bank were that those banks held deposits from the crypto world and therefore their problems were idiosyncratic.
“This is the perfect setting for bitcoin, ethereum and the rest of the decentralized-financial system to stand out as an alternative system, delinked from the traditional centralized banking system,” analysts Gautam Chhugani and Manas Agrawal wrote.
Bernstein says institutional funds and crypto funds have been bystanders in the market, with “crypto native money” behind the recent price moves. As more outside money is forced to participate, the moves higher should become sharper.
The banking on-ramp to crypto may be weaker in the U.S, but continues to be stable internationally, with access through over-the-counter hubs in Asia and Europe, the note said. OTC trading is done directly between two parties without the supervision of an exchange.
OTC hubs in the U.S. also seem to be working without interruption, the note added.
This material is taken from the website https://www.coindesk.com.
Useful material?
Market
The outflow persists for four weeks
May 7, 2024
Market
The assets were valued at $630 000 at the time of receipt
May 6, 2024
Incidents
Roger Ver has been accused of not paying taxes
May 1, 2024
Mining
After the publication of the financial report, the company’s shares added 5%
Apr 30, 2024
Market
The commission had previously warned the developer of potential enforcement actions
Apr 29, 2024
Market
Funds can be seized by law enforcers due to links to illegal activity
Apr 26, 2024