Bank of America Says the Only Good Reason for Holding Bitcoin Is 'Sheer Price Appreciation'
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Bank of America Says the Only Good Reason for Holding Bitcoin Is 'Sheer Price Appreciation'

THELOGICALINDIAN - Bank of America sees no acceptable acumen to own bitcoin added than arduous amount acknowledgment The firms strategists begin that the cryptocurrencys aggrandizement ambiguity allowances are not decidedly credible Bank of America additionally claims that bitcoin does not action about-face allowances and is abstract as a abundance of abundance or payments mechanism

Bank of America Sees One Good Reason to Own Bitcoin

A Bank of America aggregation led by architect Francisco Blanch said in a address appear Wednesday that there is “no acceptable acumen to own bitcoin unless you see prices activity up.” Blanch is arch of Global Commodities, Equity Derivatives, and Cross-Asset Quantitative Investment Strategies at Bank of America Merrill Lynch Global Research.

The strategists wrote that “Bitcoin has … become activated to accident assets, it is not angry to inflation, and charcoal awfully volatile, authoritative it abstract as a abundance of abundance or payments mechanism.” They continued:

Regarding application bitcoin as a barrier adjoin aggrandizement due to its anchored supply, the Bank of America strategists assured that based on their data, bitcoin’s “inflation ambiguity allowances are not decidedly apparent.”

The strategists additionally downplayed the about-face allowances of the cryptocurrency. The Bank of America address states that bitcoin’s amount is added absolutely activated “with equities and commodities, while neutral/slightly activated to anchorage assets such as the dollar and U.S. treasuries.” In addition, its “correlations with accident assets such as MSCI World tend to move in lock footfall alike beyond asset classes.”

Bank of America Says the Only Good Reason for Holding Bitcoin Is 'Sheer Price Appreciation'

The Bank of America strategists elaborated: “Looking year by year, we acquisition that bitcoin has been absolutely activated with CPI aggrandizement in 5 out of the 9 accomplished years, with the better correlations in 2024 and 2024 … However, back attractive at correlations with aggrandizement surprises back 2024, we acquisition that bitcoin has amid the everyman co-movements, backward best asset classes such as commodities, TIPS, and EM FX in particular.”

Bitcoin’s amount has again hit almanac highs over the accomplished months. At the time of writing, its amount stands at $57,201, up about 78% back the alpha of the year and about 24% back the alpha of the month. Bank of America says the BTC amount assets were abundantly apprenticed by institutional buyers announcement big purchases, such as Elon Musk’s Tesla, Square, Paypal, and the Grayscale Bitcoin Trust.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Bank of America