Crypto market continues to grow despite bank failures, says Bernstein

The recent bank failures have made many question the safety of the traditional banking system. But instead of returning to the established order, the world seems to be increasingly looking to alternative financial systems, such as cryptocurrency. This is supported by forecasts from the US asset manager Bernsteinwhich predict that the crypto markets will continue to grow.

Bernstein’s prediction about crypto not surprising

Bernstein’s prediction is not surprising given the current environment. The current climate seems favorable to a decentralized financial system, as it offers greater control and autonomy to individuals. Moreover, recent events have shown that problems in the banking sector are not caused by cryptocurrency.

The evidence for this comes in the form of the rescue package for the American bank First Republic Bank. This package shows that the problems facing banks are not just caused by crypto. In fact, it seems that cryptocurrencies have not played a major role in recent price movements. Instead, the market is currently driven by “crypto native money“, this is money that comes from the crypto world.

More volatility expected

But that doesn’t mean cryptocurrencies won’t play an important role in the future of the market. According to Bernstein, as more foreign money enters the market, more violent price movements will occur. This is not necessarily bad. More global attention for the world of crypto could lead to a larger share in the financial world, according to Bernstein.

All things considered, it looks like the cryptomark is in a position to keep growing. Bernstein’s predictions and the current environment suggest that positive developments could take place in the world of crypto. While the market is still volatile and carries risk, the decentralized financial system can provide an attractive alternative to traditional banking services, Bernstein said.

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