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Investing.com -- Bernstein analysts said investors should prepare for a prolonged digital asset rally, describing the current crypto cycle as "a rather long and exhausting crypto bull market" driven not by retail speculation, but by institutional blockchain adoption.
In a new Digital Assets Memo note, Bernstein stated, “Our conviction in blockchain and digital assets has never been higher.”
While previous crypto surges followed Bitcoin’s typical four-year halving cycle, the analysts argue that this time is different.
“This cycle looks more structural—clear regulatory framework, government support, strong institutional adoption,” they wrote.
Bernstein highlighted the emergence of a new financial infrastructure built on public blockchains like Ethereum and Solana.
“What we believe is being built here is a full internet-native financial system and not just a payments system,” they said, pointing to the rise of stablecoins, which they called the “first application on blockchains” to achieve critical mass.
The note forecasts widespread tokenization of real-world assets as the next phase of adoption.
“Tokenization is simply minting a digital representation of real-world asset on the blockchain... allowing instant settlement at a negligible cost,” they explained. This, combined with stablecoins, creates what Bernstein calls a “common global account” for seamless 24/7 financial access.
With stablecoin wallet usage currently near 50 million, Bernstein expects growth to reach “several hundred million” as commercial integrations expand across banks, payments, commerce, and social platforms.
Overall, Bernstein sees this cycle as the foundational stage of a broader shift. “We are in the build-out and installation phase,” they wrote, with the full internet financial system still in development.