While the markets throughout the world keep suffering in the wake of major geopolitical shifts, major crypto tokens remain majorly unaffected. That scenario has prompted many economic organizations and experts to consider digital assets as a more robust market compared to the traditional asset classes, mainly stocks.
The chief investment strategist at the Bank of America (BofA), Michael Hartnett, commented on the current drop in the macro-economic situation in his weekly research note to the organization’s clients, as reported on April 8 by Reuters.
On that note, he insisted that the deterioration may result in a recession shock in the US, as the Federal Reserve strives to resolve the four-decade high inflation rate by tightening its policies, and a majority of the investors expect a 50 basis point hike in the key interest rate.
As Hartnett just explained it:
“’Inflation shock’ worsening, ‘rates shock’ just beginning, ‘recession shock’ coming.”
Harnett also stated that in such a context, volatility, cash, commodities and cryptos may outperform the bonds and stocks.
Buy Crypto NowOthers’ Views On Crypto Resilience
Notably, BofA’s chief investment strategist is not alone in the belief that crypto might outperform the other markets in the coming months.
Based on previous reports, Bloomberg’s senior commodity strategist has a similar opinion. Mainly, Mike McGlone has stated that cryptos were coming out ahead in the ‘ebbing tide’ of inflation that all the major central banks in the Western nations were facing.
He also confirmed his position of their ‘divergent strength’ mainly compared to the stock market, in the context of the currently developing financial situation during which NASDAQ has lost nearly 8% on the year, while Bitcoin (BTC) remains primarily unchanged.
Previously, Mr. McGlone also elaborated his belief that Bitcoin may be maturing toward global digital collateral,” and that it was expected to triumph given that its losses in 2020 were less than 50% of those of NASDAQ 100’s.
In the meantime, the cumulative market capitalization of cryptos is at the $2 trillion level, even as it strives to remain above it, it crossed the level for the first time this year in late March, as highlighted by Tradingview.
