Strategists at Bank of America reportedly say that a change in the macroeconomic landscape could be the catalyst that sends crypto markets higher in price.
According to Reuters, analysts at the banking giant have sent a new note to clients caveat that accelerating inflation and a slowdown in the global economy could spill over into US markets.
Analysts say a deteriorating economy would likely force the Federal Reserve to tighten monetary policy to rein in persistent inflation, which could put a lot of selling pressure on stocks and traditional assets.
BofA Chief Investment Strategist Michael Hartnett reportedly says:
โ'Inflation shock' worsens, 'rate shock' just started, 'recession shock' [is] coming."
Hartnett added that in such a climate, cash, volatility, commodities and cryptocurrencies could become the most attractive assets for investors, outperforming both stocks and the bond market.
Earlier this week, the Federal Reserve published meeting minutes that confirmed that all Fed officials agreed that raising the fed funds rate would be necessary to curb inflation.
โIn their consideration of the appropriate monetary policy stance, all participants agreed that the US economy was very strong, with an extremely tight labor market, and that inflation was high and well above the 2% inflation target. of the committee.
In this context, all participants agreed that it was appropriate to begin a process of removing accommodative policies by raising the target range for the fed funds rate at this meeting. Further, they judged that continued increases in the target range for the fed funds rate would be warranted to achieve the committee's goals."
Last month, Bloomberg chief commodity strategist Mike McGlone also saying that a possible recession could end up being bullish for Bitcoin. According to the analyst, BTC is transitioning from a risky asset that trades alongside tech stocks to a risky asset that investors use to store value in times of economic uncertainty.
โWhat I see him doing is shifting from risks to risks. It can get to $30,000, but if it gets there, imagine where the stock market will be.
You can easily correct 30%, 40% in the bag, has happened in history. So I think Bitcoin pulls through.
I still think based on supply and demand and adoption trends, it's only a matter of time before it hits $100,000. This could be part of that base-building period.โ
Check price action
Follow us Twitter, Facebook Y Telegram
Surf Hodl's Daily Mix
ย
Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl is involved in affiliate marketing.
Featured Image: Shutterstock/prodigital art
