The report stated that the bank sees growth assets for smart contract-enabled altcoins as growth assets that are exposed to similar risks as growth stocks.
Bank’s chosen altcoin
Bank of America (BAC) said in a report Friday that the cryptocurrency market got off to a much better start this year than most expected, with the token universe reaching $1.1 trillion, up 42% year-to-date. “We expect 2023 to be the year of token price divergence, with utility tokens calling for cash flow to outperform meme and governance tokens,” the report said.
The bank sees cryptocurrencies powering smart contract-enabled blockchain platforms, where developers can build applications, as growth assets that are exposed to the same risks as growth stocks. He states that these cryptos and small-volume liquid tokens are leading the rally this year. Here is a sample list of the tokens the bank is talking about:
Bank of America strategists remain cautious about growth as strong economic data delays the timing of a recession, but it also ‘points to the potential for reflation and additional rate increases.’
Analysts Alkesh Shah and Andrew Moss wrote, “Given that the risk asset rally in January was partly driven by the open close and average reversal, a higher rate environment for a longer period of time could put pressure on growth and hence cryptocurrencies.” A short position is a way to bet that a price will drop. An investor borrows a security and sells it, hoping that its price will drop. They then buy back the security and return it to the lender. A return to mean is a theory used in finance that suggests that asset prices tend to return to their long-term average or average levels.
Filecoin, a smart contract feature, makes progress
Filecoin (FIL) has announced the launch of a software platform that will deliver smart contracts on the network. The software platform has been named Filecoin Virtual Machine (FVM) and will allow developers to build decentralized applications on the Filecoin (FIL) network. The news about this upcoming software platform has generated positive sentiments around Filecoin (FIL).
The price of Filecoin (FIL) has been quite volatile over the past few weeks. Filecoin (FIL) price has increased by 26% in the last 30 days, according to cryptokoin.com data. However, Filecoin (FIL) has lost 22% in the last 1 week. Currently, Filecoin (FIL) is trading at $6.68.
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