- Bank of America’s chief investment strategist has recently cited in a note that digital assets could outperform bonds and stocks amid a potential recession.
- The Bank of America was earlier among the ones who were not that optimistic about Bitcoin and other cryptocurrencies.
- Michael Hartnett tried to warn the bank clients that most of the assets will meet higher volatility.
Michael Hartnett, Bank of America’s chief investment strategist has recently cited in a note that Bitcoin and other digital assets could outperform bonds and stocks amid a potential recession.
He argued that the new policy by the US Federal Reserve could push the country and most of the world into such an economic state.
A note from the Bank of America’s strategists highlights that the macro-economic picture is deteriorating fast and it might lead to a situation of recession for the largest economy globally.
Hartnett used phrases like rates shock just beginning, inflation shock worsening, recession shock coming, etc., and tried to warn the bank clients that most of the assets will meet higher volatility. Although some like the bonds and stocks might outdo the others. And that the bank-backed major assets like cash and commodities might come to the top amidst the recession including cryptocurrencies.
Although the Bank of America was among the ones who were not that optimistic about Bitcoin and other cryptocurrencies. But following its long taking jab against the crypto space, it signified last year in March that bitcoin is highly volatile, which makes it impractical as a store of wealth or payments mechanism.
But then there were a few instances that suggested the bank’s changing approach towards the asset class. In the summer of last year, there were reports that the bank had set up a research team for cryptocurrencies.
And following that, the Bank of America rolled out a Bitcoin futures trading service. And later the researchers from the bank also called BTC to be important and the crypto space to be too large to ignore. Furthermore, it also appreciated networks like Solana, Chainlink, etc.
This change of sentiments regarding the asset class signifies that no matter how skeptical some entities might be about cryptocurrencies, it has emerged as a considerable part of global finance.
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Source: https://www.thecoinrepublic.com/2022/04/10/crypto-may-surpass-stocks-amidst-potential-recession-highlights-bank-of-america/