Bank of America: Crypto markets have limited upside in the near
Bank of America (BAC) said in a research note on Friday that the cryptocurrency market has limited upside in the short term. Analysts Alkesh Shah and Andrew Moss wrote that low market confidence, limited catalysts and outperformance year-to-date have kept the digital asset industry stuck in a trading range, while a challenging macro backdrop may limit digital asset upside. Conversations with clients suggest that hedge funds are returning to token trading, with momentum strategies likely to benefit in part from heightened volatility due to lower trading volumes, the bank said. The report added that traditional finance (TradFi) firms and tech firms continue to build blockchain applications, focusing on the tokenization of demand deposits, repo settlement, and bond issuance.
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