Cryptocurrency Market Set for More Upside After Bank Problems: Bernstein

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Financial markets have been rocked in the past week following a series of bank failures, providing a perfect backdrop for the decentralized finance stands out as an alternative and for continued advancement in the cryptocurrency markets, Bernstein said in a research report on Saturday.

Bank of the First Republic (FRC) multi-institution deposit rescue package should make it clear that this is a "generic banking problem" and that cryptocurrencies are not to blame, the report said, noting that initial reactions to the collapse of silvergate bank, Silicon Valley Bank and signature bank They were that those banks held deposits from the crypto world and therefore their problems were idiosyncratic.

“This is the perfect scenario for bitcoin, ethereum and the rest of the decentralized financial system to stand out as an alternative system, de-linked from the traditional centralized banking system,” analysts Gautam Chhugani and Manas Agrawal wrote.

Bernstein says that institutional funds and crypto funds have been bystanders in the market, with “crypto native money” behind recent price movements. As more outside money is forced to participate, the bullish moves should become sharper.

The bank on-ramp to cryptocurrency may be weaker in the US, but it remains stable internationally, with access via over-the-counter hubs in Asia and Europe, according to the note. military cadet corps Trading is done directly between two parties without the oversight of an exchange.

OTC centers in the US also appear to be running without interruption, the note adds.

Read more: Crypto Outlook Strengthened by US Bank Turmoil: Coinbase

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