2023, a year in which cryptocurrency prices diverge: Bank of America

The cryptocurrency market is off to a much better start than expected, with a market capitalization of about $1.1 trillion, up 42% year-to-date, Bank of America reports Feb. 24. said in

“We believe that 2023 will be a year in which crypto asset prices diverge” (report)

The bank sees blockchain crypto-assets, which support smart contracts that enable application development, as growth assets exposed to the same risks as growth stocks. He pointed out that these crypto assets and small liquid tokens have been the driving force of the rally since the beginning of the year.

Still, strategists at the bank remain cautious, saying the positive economic data has delayed the timing of a recession and “points to the potential for reflation and further rate hikes.”

“Given that the January rally in risky assets was driven in part by short covering and a return to the mean, a likely environment of long-term interest rate increases is likely to drive growth assets and thus digital assets. pressure,” the report said.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
| Image: Taylor Simpson/Unsplash
｜Original: 2023 Will Be Year of Crypto Token Price Divergence: Bank of America

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