Against the backdrop of a protracted crisis in the cryptocurrency market, the interest of retail investors in digital assets has weakened, but the demand for regulated products from clients of traditional institutions has increased. This is stated in the report of the investment bank Morgan Stanley, according to CoinDesk .
After the collapse of FTX and Alameda Research, the market is reconsidering the value of issued tokens and their use as margin collateral, experts noted.
Industry participants surveyed by Morgan Stanley expect a further wave of deleveraging and bankruptcies.
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Respondents found it difficult to name the deadlines for the completion of the process, but expressed confidence in the further development of “cryptography, blockchain and DLT, as well as increasing their role in trading financial assets.”
According to analysts, the current bear market is reminiscent of the events of 2017-2018, when the price of Bitcoin fell by 70% from its peaks. The difference is greater leverage, which is caused by the increased role of market makers, trading firms and institutionals by reducing the influence of retail investors.
Morgan Stanley emphasized that infrastructure remains key for industry participants. They also noted that some investors believe it will take 10 to 15 years before cryptocurrencies enter the mainstream.
Earlier, Glassnode analysts pointed to the transition of market participants from the distribution to the accumulation of Bitcoin. The trend is common across almost all categories and is most pronounced among addresses holding less than 1 BTC.
Recall that JPMorgan predicted the continued superiority of centralized platforms over their decentralized counterparts despite the collapse of FTX.