Bank of America: Limited Upside for Crypto Markets in the Short Term
May 23rd report - Bank of America (BAC) stated in a research report on Friday that cryptocurrency markets have limited upside potential in the short term. Analysts Alkesh Shah and Andrew Moss wrote that low market confidence, limited catalysts, and strong year-to-date performance have trapped the digital asset industry in a trading range, while challenging macro conditions may constrain upside potential for digital assets.
May 23rd report - Bank of America (BAC) stated in a research report on Friday that cryptocurrency markets have limited upside potential in the short term. Analysts Alkesh Shah and Andrew Moss wrote that low market confidence, limited catalysts, and strong year-to-date performance have trapped the digital asset industry in a trading range, while challenging macro conditions may constrain upside potential for digital assets.
The bank noted that conversations with clients indicate hedge funds are returning to token trading, and momentum strategies may benefit to some extent from increased volatility caused by declining trading volumes. The report added that traditional finance (TradFi) companies and tech firms continue to build blockchain applications, focusing on tokenization of demand deposits, repo settlements, and bond issuance.