While markets around the world are suffering from major geopolitical changes, major kryptoměny remain largely intact. This has led economic organizations and professionals to consider digital assets as a more robust market than traditional asset classes, especially stocks.
Possible recession shock
As Reuters reported on April 8, Michael Hartnett, chief investment strategist at Bank of America (BofA), commented on the current downturn in the macroeconomic situation in a weekly research report to clients organization.
He warned in a note that the deterioration could lead to a recession shock in the United States as the Federal Reserve seeks to cool four decades of high inflation by tightening their policy, investors expect the key interest rate to rise by 50 basis points.
Hartnett simply explained:
The “inflation shock” is getting worse, the “interest rate shock” is just beginning, the “recession shock” is coming. “
Hartnett added that in such a context, cash, volatility, commodities and cryptocurrencies could outperform bonds and shares.
Opinions of others on the resistance of cryptocurrencies
It is worth noting that BofA’s chief investment strategist is far from alone in believing that the crypto could outperform other markets.
As previously reported, Bloomberg’s chief commodity strategist holds a similar view. Specifically, Mike McGlone said that cryptocurrencies meet the “outflow” of inflation that all central banks western countries.
He also reiterated his stance on their “divergent power”, particularly in relation to the stock market, in the context of the current financial situation, during which the Nasdaq fell by about eight percent year on year, while bitcoin (BTC) remains almost unchanged.
Earlier, Mr. McGlone also expressed the belief that “bitcoin may be maturing to global digital security” and that he is ready to triumph, given that its losses in 2020 were less than half those of the Nasdaq 100.
Meanwhile, the total market capitalization kryptoměn It is at the level of $ 2 trillion, although it is trying to stay above it, exceeding it for the first time this year in late March.
Conclusion
Many people are now turning to cryptocurrencies, and it is interesting to see them still holding on to their strength. Join us too official discord server KRYPTOMAGAZIN CZ.
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