2 years ago
There is constricted upside for cryptocurrency markets successful the near-term, Bank of America (BAC) said successful a probe study Friday.
“Low conviction, constricted catalysts and outperformance year-to-date permission the integer plus assemblage stuck successful a trading scope with a challenging macro backdrop apt capping integer plus upside,” analysts Alkesh Shah and Andrew Moss wrote.
The slope says conversations with clients suggest that hedge funds are returning to token trading, “with momentum strategies apt benefitting to immoderate grade from heightened volatility owed to declining trading volumes.”
Momentum investing is erstwhile investors bargain assets that are rising and merchantability them erstwhile they look to person peaked, utilizing volatility to place buying opportunities successful short-term uptrends and past selling erstwhile momentum appears to beryllium waning.
Bank of America says it expects cryptocurrency trading volumes to stay subdued, with retail investors remaining connected the sidelines.
Traditional concern (TradFi) companies and tech firms proceed to physique blockchain applications focused connected tokenizing request deposits, repo settlements and enslaved issuance, the study added.
Edited by Oliver Knight.
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