Crypto Will Triumph, Buy Bitcoin
According to analysts at Bernstein Private Wealth Management, Bitcoin has much brighter days ahead. Banks’ losses are Bitcoin’s gain, they argue.
Bernstein analysts predict that the US banking crisis could be the catalyst that finally propels Bitcoin into mainstream adoption. According to the analysts, banks’ woes will fuel a “new crypto cycle.” One driven by mass migration to self-custody wallets.
“The safe haven signal will lead to a new crypto cycle, pushing digital wallets as on-chain savings accounts,” Bernstein analysts Gautam Chhugani and Manas Agrawal said on Wednesday, in a note seen by CNBC. “The gap between Treasury rates and bank deposit rates will continue to hollow out banks, with weak balance sheets leading to another round of mass migration to money markets.”
“To rescue the ship, the Fed will have to resort to dollar debasement and monetary printing again, bringing back the role of Bitcoin as digital gold,” they added.
BTC Up 75% This Year
Both analysts believe that 2023 will be a year of hyper-scaling and growth of self-custody wallets. As well as the adoption of decentralized finance by both retail and institutional participants.
Bernstein has previously been confident about crypto’s prospects. Earlier this month, the firm suggested that the collapse of FTX drove the latest upswing in the crypto markets.
Its analysts are not the only ones feeling bullish. Crypto investors have generally had a positive 2023 so far. Bitcoin’s price is trading at around $29,000, approximately 75% up from the beginning of the year. Optimistic voices are rising, though tempered with caution about the asset’s volatility.
Earlier this week, a researcher at Standard Chartered claimed the market lull, known as the “crypto winter,” was over. Geoff Kendrick, Standard Chartered’s head of digital assets research, predicted Bitcoin may reach $100,000 by the end of 2024.
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