Bank of America: Crypto Can Outperform Stocks Amid Potential Fed-Propelled Recession

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The Bank of America warned that Fed's recent actions could lead to a recession, but cryptocurrencies could emerge as winners.

Citing a note from the Bank of America’s strategists, Reutersthat the “macro-economic picture is deteriorating fast” and could lead to a recession for the world’s largest economy.

By using strong words like “inflation shock worsening, rates shock just beginning, recession shock coming,” Hartnett warned bank clients that most assets will meet massive volatility. Yet, some, such as bonds and stocks, will underperform others. In fact, the bank-backed several horses to come on top amid the potential recession – cash, commodities, and, interestingly, cryptocurrencies.For those following the crypto industry and the general approach from Wall Street toward it, seeing BofA choosing digital assets as potential top-performers could be quite surprising. In fact, it wasn’t all that long ago when BofA, along with countless other banking organizations, took frequent jabs against bitcoin and the entire field.

We won’t mention the change of heart moments from names like JPMorgan, Goldman Sachs, and Citigroup. Let’s focus on the Bank of America.in March 2021 that bitcoin is highly volatile, making it “impractical as a store of wealth or payments mechanism.”

 

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