Bank of America has recently published a dystopian report about the economic projections for the county in the upcoming weeks. The bank cited that the recent macroeconomics changes that are taking place in the world can trigger these cascading waves. The report was published by Reuters that includes a warning for the consumers of BoA.
The report talks about a heavy storm of inflation hitting the economy and also becoming the cause for creating blocks in international trading practices. BoA analysts also claimed that the dire economic conditions could impose the Federal Reserve to implement money tightening policies to quarantine the situation. Under such an event, the prices of the stocks and equities can take a hit due to the ensued selling pressure.
Michael Hartnett is the leading BoA financial and economic analyst who played an important role in creating the report. He claims that the onslaught of the inflation storm will exacerbate the pricing crisis and eventually put the economy into a prolonged state of recession. He also talked about the impact of the economic changes on trade commodities like stocks, equities, bonds, and cryptocurrencies.
The Federal Reserve recently confirmed that the government organization is leaning towards increasing the funding rates to contain the attack of inflation. Last week, the national bank of the United States issued a statement citing that the labor market is short, and the committee is planning to introduce monetary policies that can counter the initially anticipated 2% inflation before it exceeds all limitations.
Impact of Inflation on the Price of Cryptocurrencies
Mike McGlone is the chief commodity strategist at Bloomberg. Commenting on the economic projections, he predicted last month that the upcoming recession-era could help Bitcoin to gain more traction among investors. He further claimed that many investors who have shown interest in tech company stocks have started to show greater interest in crypto coins in their investment portfolio.
He also predicted that Bitcoin could go as far as $30K with a 30-40 percent correction. However, he maintained that it is worth considering that under such dire circumstances, the condition of the traditional stock market could do worse. McGlone also added that Bitcoin is shifting its image away from risk-off and risk-on commodity.