The Bank of America – BOA believes crypto can outperform stocks amid the recession, warning that the recent FED actions can lead to a recession but crypto can emerge as the winner so let’s read more today in our latest cryptocurrency news.
Bitcoin and other cryptocurrencies can outperform both stocks and bonds amid a potential recession according to BOA chief investment strategist Michael Hartnett. In an interview, he argued that the US Federal Reserve’s new policy can push the country and most of the world into an economic state. After many years of trying to fight the consequences of COVID through an expansion of the balance sheet which is now around $9 trillion, the US central bank changed its tune at the start of 2022. After this move, the FED decided to reduce it and some reports suggested that it can soon shed up to $95 billion worth of assets per month.
Citing a note from the BOA strategists, the macro-economic picture is deteriorating and can lead to a recession for the world’s biggest economy. By using words like inflation, rates, and recession, Hartnett warned bank clients that most assets will have a strogn volatility but some like bonds and stocks will underperform others. The bank-backed several horses to come up front with the potential recession-like, cash, commodities, and cryptocurrencies. For those following the industry and the approach from Wall Street towards it, BOA believes crypto can be a top performer. It wasn’t all that long when BofA along with countless other banking organizations took jabs against BTC but also against crypto.
After years of ignoring crypto, the Bank of America asserted that Bitcoin is highly volatile and made it impractical as a store of wealth or payment mechanism. Then came the summer of 2021 and the reports emerged that BOA set up a crypto research team. The change of sentiment was enhanced later when it became known that BofA launched a BTC futures trading service. The u-turn that the bank made was only solidified in October and the BoFa researchers called BTC important and referred to the whole industry as too big to ignore. Since then, the bank praised other networks and their native coins like Chainlink and Solana.
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