At this time, the macroeconomic environment that we are used with no longer exists. He's on the verge of degrading at a breakneck speed. And, according to Bank of America (BofA), the worst is yet to come. The institution believes that the US economy will see a sharp downturn in the near future as a result of the Federal Reserve's restrictive monetary policy. However, the situation with cryptomonnaies is rather different.
Despite the crisis, cryptomonnaies remained safe and secure.
The global financial market is undergoing changes as a result of major geopolitical shifts that characterise current events throughout the world. But, for the time being, the main digital assets have remained mostly unaffected on the cryptocurrency market.
As a result, business organisations and experts are beginning to believe that digital assets are a more stable market than traditional asset classes. They compare these assets to actions, for example. As a result, cryptomonnaies appear to have the potential to keep investors afloat while also providing them with the opportunity to earn money.
Things might get much more complicated in a difficult environment for people who only invest in traditional investments. Perhaps this is the time to put faith in digital currencies. Indeed, according to a Bank of America (BofA) specialist, liquidities, primary commodities, and cryptomonnaies might outperform actions and obligations.
For the American economy, a difficult period is ahead
Michael Hartnett, the Bank of America's chief investment strategist, has expressed his opinion on the current macroeconomic downturn. It was expressed in a hebdomadary research note aimed at the organization's clients, as Reuters reported on April 8.
In this official message, he clarified what we had begun to worry about: « The inflation crisis is worsening ». He hasn't misplaced his words. According to him, there is "an escalating inflationary spiral, an escalating rate spiral, and an escalating recessionary spiral." In short, he believes that a worsening of the macroeconomic situation might lead to a recession in the United States.
This scenario is all the more concerning because, for the past four decades, the FED has been attempting to reduce high inflation by rescinding this policy.
The Bank of America (BofA) has warned that the next days may be particularly difficult for investors in traditional assets. According to Michael Hartnett, a bank professional, "the inflation (risk) is escalating."
Source : Finbold
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