In a report titled “Digital Assets: in the Flow,” Bank of America said on March 1 that an analysis of cryptocurrency flows between individuals and exchange wallets showed the market “lacks direction.” Sexual Beliefs”. Fed tightening and macroeconomic headwinds could limit the cryptocurrency’s upside over the next six months. However, analysts led by Alkesh Shah wrote in a recent report that this will not be a “crypto winter” given the growth in user adoption and developer activity.
The bank said outflows from bitcoin transactions suggest that there is not much momentum for bitcoin to buy the dip, while inflows in ethereum suggest that its price may continue to face headwinds. Exchange inflows for the top three stablecoins slowed significantly for the second week in a row, the report said.
Exchange inflows hit $517,000 last week, down 99% from the previous week, suggesting investors may be waiting for their moment in the current macroeconomic environment, analysts at the bank said. The cryptocurrency market will struggle to break out of its recent trading range until fears of a potential recession are dispelled, the report said.