U.S. banking giant Bank of America (BofA) analysts have issued a dire economic warning, saying the shock wave could cause a boom in crypto, gold and commodities.
Investors may turn to gold and cryptocurrencies
Bank of America analysts have released a new report warning that rising prices and a faltering global economy could engulf US markets. If the economy continues to deteriorate, the Fed will have to tighten its monetary policy to contain persistent inflation, putting significant downward pressure on stocks and conventional assets, according to experts. In part of the report, Michael Hartnett, BofA’s top investment strategist, says:
“Inflation shock’ is getting worse, ‘rate shock’ is just getting started and ‘recession shock’ is on the way.
According to Hartnett, cash, volatility, commodities and cryptocurrencies could become the most attractive assets for investors in such a scenario and outperform both stocks and the bond market. As reported on
Kriptokoin.com news, the Fed released meeting minutes earlier this week, confirming that all Fed members agreed that it would be necessary to raise the federal funds rate to keep inflation under control. Some of the publications:
In assessing the appropriate stance of monetary policy, all participants agreed that the US economy is very strong with an extremely tight labor market, inflation is high and well above the committee’s 2% inflation target. Against this backdrop, all participants agreed at this meeting that it was appropriate to begin the process of policy deregulation by raising the target range for the federal funds rate. They also decided that continued increases in the federal funds rate target range would be warranted to meet the committee’s goals.
Mike McGlone: I believe Bitcoin will hit the top
Bloomberg’s leading commodity strategist Mike McGlone said last month that a possible recession could be good for Bitcoin . According to the expert, BTC is moving from a risk-free asset traded alongside tech companies to a risk-free asset that investors use to derive value in times of economic uncertainty. Here are the reasons:
As I see it, it goes from risk to risk. It might hit $30,000, but imagine where the stock market would be if it did. It is very easy to correct between 30% and 40% in the stock market, as in the past. Then I believe Bitcoin will peak. Based on supply, demand and adoption trends, I believe it will only be a matter of time before it reaches $100,000. It is possible that this is part of the foundation building process.
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