Report: The Great Transition to Gold, Bitcoin, and Cash

Bank of America (BoA) reported that $112.7 billion in assets have flowed into cash and less than $600 million since last weekend when US officials bailed out Silicon Valley Bank and Signature Bank. According to BoA’s latest weekly US market statistics, this cash inflow was the largest since April 2020 and also made this quarter the cycle with the highest movement.

The bank reported that bond outflows were moderate at $2.3 billion, reflecting strong inflows into US government bonds and escapes from emerging markets. BoA stated that if stocks had followed the redemptions seen during Lehman’s bankruptcy and the Covid crisis, outflows would have been between $30 and $50 billion, but that did not happen. Bank of America also added:

“While crypto also performed well (up 41 percent), the flow of U.S. equity funds was virtually unchanged, emphasizing the resilience of stocks.”

Noting that banks urgently borrowed $165 billion from the Fed and $153 billion from the discount window, BoA said, “Emergency loans… stricter bank lending rules… Restricted access to capital for small businesses… Increasing unemployment rates… Same whole bath.” made. In the report, which stated that there have been 14 major recessions in the world since 1870, it was stated that all of them were caused by wars, epidemics and banking crises. It was also added that the latter caused an average of 4 percent decrease in world GDP per capita.