Players are concerned about the prospect of a protracted recession in the US
Bank of America claims that investors in crypto projects now prefer to be cautious amid the market uncertainty. Experts noted that investors increasingly prefer stablecoins that are pegged to the US dollar or gold. The reason is the high level of volatility of crypto assets, while the end of the crisis in the digital currency market is still not visible.
Analysts believe that investors are concerned about the prospect of a protracted recession in the US. Despite the fact that a significant part of assets, including crypto currencies, has clearly increased since the June lows, the unpredictability of further actions by the Fed is forcing market participants to behave more cautiously.
Bank of America believes that if higher interest rates persist for a significant time, the position of the crypto market could roll back.
Risky assets, including digital currencies, are likely to experience a classic rebound amid an ongoing recession, analysts say. Bank of America believes that momentum from buying crypto assets is waning, with investors taking a defensive stance buying stablecoins.
Some investors are suggesting that the current situation is a short-term respite before a longer recession.
However, the influential American entrepreneur and ex-cryptoskeptic David Rubinstein, against the backdrop of what is happening, said that he had recently invested money in several crypto firms. He recently noted that he positively assesses the prospects for market regulation by US regulators.
According to him, adequate regulation can help the development of cryptocurrency projects, and digital assets will become part of the market.
“Some blockchain related investments and crypto companies will stay with us. Young people now have both the intelligence and the energy to launch new trends,” Rubinstein recently said.
Do you agree with this?