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Bank of America Predicts Crypto To Skyrocket Amidst Impending “Recession Shock”

Bank of America Predicts Crypto To Skyrocket Amidst Impending “Recession Shock”

The Bank of America (BofA) strategists predict that the accelerating inflation and a slowing global economy could change the US macroeconomic landscape.

BofA Still Bullish On Crypto

A Reuters report revealed that analysts at the BofA have issued a warning regarding rising inflation and how it slows down the global economy and affects the US markets. However, the strategists are also of the opinion that this changing macroeconomic landscape could be the catalyst that boosts the value of digital assets to a new level. 

In fact, in the note to the clients and customers, chief investment strategist at BofA, Michael Hartnett, wrote, 

“‘Inflation shock’ worsening, ‘rates shock’ just beginning, ‘recession shock’ coming.”

Additionally, he also added that cash, volatility, commodities, and cryptocurrencies could outperform bonds and stocks because of this situation.

Federal Officers Meet To Curb Inflation

At the same time, the US central bank or the Federal Reserve has been talking about raising the federal fund rates to curb inflation. According to the minutes of a meeting held earlier this week, 

“In their consideration of the appropriate stance of monetary policy, all participants concurred that the US economy was very strong, with an extremely tight labor market, and that inflation was high and well above the committee’s 2% inflation objective. Against this backdrop, all participants agreed that it was appropriate to begin a process of removing policy accommodation by raising the target range for the federal funds rate at this meeting. They further judged that ongoing increases in the target range for the federal funds rate would be warranted to achieve the committee’s objectives.”

BofA’s Love For Altcoins

The BofA has consistently held an optimistic view of cryptocurrencies, favoring certain altcoins over the years. In October 2021, in a report published on the Digital Assets Primer, certain BofA officials commented that the impressive crypto ecosystem warrants cryptocurrencies becoming a new asset class altogether. The report covered ground about evaluating digital assets and cultivating developer interest in certain blockchains. Additionally, BofA had mentioned that other than BTC, several other altcoins are also showing promise, naming Tezos as a viable example. The BofA identifies the ever-expanding Tezos ecosystem that can give leading blockchains a run for their money while being much more energy-efficient due to its Proof-of-Stake consensus mechanism. 

The financial giant has also recognized and appreciated the work done by the Avalanche network on its subnet feature, which has driven the development of multiple projects on the Avalanche platform. Moreover, Solana had also received the BofA stamp of approval when recently, BofA official Alkesh Shah claimed that the Solana blockchain had the potential to become the “Visa of crypto.”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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