The US banking giant issues a dire economic warning saying Crypto and commodities might skyrocket 


According to reports, Bank of America analysts believe that a change in the macroeconomic environment might be the impetus for the cryptocurrency markets to rise in price.

According to Reuters, the banking giant’s experts have issued a fresh note to customers warning that rising prices and a faltering global economy might extend to US markets.

According to the experts, a weakening economy would likely require the Federal Reserve to tighten monetary policy in order to rein in persistent inflation, putting significant downward pressure on stocks and conventional assets.

According to reports, BofA’s top investment strategist Michael Hartnett said, “‘Inflation shock’ is deteriorating, ‘rates shock’ is only getting started, and’ recession shock’ is imminent.”

Hartnett said that in such an environment, cash, volatility, commodities, and cryptocurrency may become the most attractive assets for investors, outperforming both stocks and the bond market.

The Federal Reserve issued meeting minutes earlier this week, confirming that all Fed members agreed that hiking the federal funds rate would be essential to reining in inflation.

“When deliberating on the optimal monetary policy approach, all members agreed that the US economy was very robust, with an extraordinarily tight labor market, and that inflation was high and far over the committee’s 2% inflation target.

In light of this, all participants agreed that it was appropriate to begin eliminating policy accommodation by increasing the federal funds rate target range at this meeting. Additionally, they determined that continued increases in the federal funds rate target range would be necessary to accomplish the committee’s goals.”

Bloomberg’s chief commodities analyst Mike McGlone similarly said last month that a prospective recession may be beneficial for Bitcoin. According to the expert, BTC is evolving from a risk-on asset that trades alongside technology companies to a risk-off asset that investors use to hold value during periods of economic instability.

“From what I can see, it’s turning from risk-on to risk-off.” It may reach $30,000, but picture where the stock market will be if it does.

It is very possible for the stock market to correct 30% or 40%; this has occurred in the past. Then, I believe, Bitcoin emerges victorious.

I continue to believe that it is just a matter of time until it reaches $100,000, based on supply and demand and adoption patterns. This might be a component of the time of base formation.”

Also Read: Luna Foundation Acquires 4,130 Bitcoin, Bringing it to 39,897 BTC

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