Bank of America says about the short-term growth potential of the crypto market is limited
Analysts expect trading volumes of digital assets to remain low
23.05.2023 - 14:25
195
1 min
0
There is limited upside for cryptocurrency markets in the near-term, Bank of America (BAC) said in a research report Friday.
“Low conviction, limited catalysts and outperformance year-to-date leave the digital asset sector stuck in a trading range with a challenging macro backdrop likely capping digital asset upside,” analysts Alkesh Shah and Andrew Moss wrote.
The bank says conversations with clients suggest that hedge funds are returning to token trading, “with momentum strategies likely benefitting to some extent from heightened volatility due to declining trading volumes.”
Momentum investing is when investors buy assets that are rising and sell them when they appear to have peaked, using volatility to identify buying opportunities in short-term uptrends and then selling when momentum appears to be waning.
Bank of America says it expects cryptocurrency trading volumes to remain subdued, with retail investors remaining on the sidelines.
Traditional finance (TradFi) companies and tech firms continue to build blockchain applications focused on tokenizing demand deposits, repo settlements and bond issuance, the report added.
This material is taken from the website https://www.coindesk.com.
Useful material?
Telegram 
Twitter Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Cryptocurrency rates
-
Bitcoin
$97 969
BTC
-1.01%
-
Ethereum
$3 427.06
ETH
+4.17%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.48
XRP
+1.9%
-
Dogecoin
$0.429169
DOGE
+7.06%
-
Cardano
$1.07
ADA
+8.46%
-
Stellar XLM
$0.498328
XLM
+45.07%
-
Polkadot
$8.59
DOT
+34.14%
-
Bitcoin Cash
$505.07
BCH
+3.12%
-
Litecoin
$99.07
LTC
+9.41%