Image default

Bernstein: Returns From Buying Crypto During Downturns Have Been Spectacular

Facebook iconLinkedin iconTwitter iconCrypto winter (Timothy Eberly/Unsplash)

(Timothy Eberly/Unsplash)

Consensus 2023 LogoJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your SeatFacebook iconLinkedin iconTwitter iconConsensus 2023 LogoJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your Seat

Before the turmoil of 2022, the digital assets market had witnessed two prior crypto winters, and the returns from buying into such periods of market stress have been spectacular, brokerage firm Bernstein said in a research report Monday.

Bernstein notes that despite bitcoin’s (BTC) slump last year, the largest cryptocurrency is up about 60 times from its 2014 low and roughly five times from its 2018 bottom. Ether (ETH) is up 14 times from the 2018 lows, despite a 68% slide last year.

The crypto industry has a strong track record of fighting back from its lows and “taking punches when down,” the report said. Still, some may argue that the macro backdrop is different this time, the report added.

“Crypto is probably among the few industries that can clock frontier-tech-like growth, in a broadly maturing tech landscape,” analysts Gautam Chhugani and Manas Agrawal wrote. Crypto currently touches less than 5% of total internet users with “significant headroom for application led adoption.”

Investors should continue to focus on the long term consumer adoption of crypto, the note said, and this adoption should mirror the growth of the internet, as blockchain applications become increasingly mainstream.

As blockchains scale up and applications mature, Bernstein expects the monthly user base to increase by as much as 100-fold over the longer term, with gaming, social and non-fungible-token (NFT) based digital commerce and brands leading adoption.

NFTs are digital assets on a blockchain that represent ownership of virtual or physical items and can be sold or traded.

The crypto industry should focus on growing the space by “accepting a few regulatory trade-offs, that would incite more capital and mainstream participation,” the note added.

Read more: Citi Says Crypto Market Leverage, Open Interest Are Historically Low


Trending1CDCROP: Judge's Hammer (Pixabay)MarketsFirst Mover Americas: Legal Troubles Brewing at Digital Currency GroupJan 3, 20232House Financial Services Committee Holds Hearing On FTX CollapsePolicyBahamas-FTX Dispute Heats Up as Bankman-Fried Prepares for Trial Jan 3, 20233CDCROP: Stronghold runs a coal refuse facility in Pennsylvania. (Stronghold Digital Mining)BusinessBitcoin Miner Stronghold Continues Debt Restructuring With Convertible Preferred Share IssuanceJan 3, 20234CDCROP: Bithumb website (Shutterstock)BusinessEx-Bithumb Chairman Acquitted in South Korea $100M Crypto Exchange Fraud Trial: ReportJan 3, 2023


Related posts

Ether, Solana Lead Losses Among Major Cryptos, Analysts See Further Declines After Fed Rate Hikes

Blake Goodwin

Binance Will Convert $1B Worth of BUSD Stablecoin to Bitcoin, Ether, BNB and Other Tokens

Blake Goodwin

First Mover Asia: Bear Market? Taxes? Crypto’s Allure in India Grows, KuCoin Survey Finds; Bitcoin Continues Holding Pattern Over $21K

Blake Goodwin

Leave a Comment