“There Might Be a Limited Uptrend in the Crypto Market in the Near Term”

Bank of America, in its research report published on Friday, stated that it expects a limited rise for the crypto money markets in the near term. Analysts Alkesh Shah and Andrew Moss said:

Limited catalysts and performance since the start of the year are pushing the digital asset industry between a trading range and a macro environment that limits asset upside movements.

The bank says hedge funds are turning to token trades in line with conversations with customers. The bank also states that momentum strategies benefit from increased volatility due to reduced trading volumes.

Momentum investing refers to investors buying rising assets and selling when they are at their peak, using volatility to identify buying opportunities in short-term uptrends, and then selling when momentum seems to be waning.

Traditional finance (TradFi) companies and technology firms continue to develop blockchain applications that help tokenize demand deposits, repo settlements and bond issuance, according to a Bank of America report.