Cryptocurrencies should be viewed as risky assets, Bank of America said in a report. Bank analysts are skeptical about the medium-term prospects for bitcoin and other virtual currencies.
Back in the middle of summer, Bank of America recorded a weakening in investor interest in an innovative tool.
Traders are afraid of the uncertainty in the stock markets. In this situation, the exit of capital from the technology sector will continue. Cryptocurrencies, as a category of risky assets, will also suffer losses, Bank of America noted.
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Evidence of the anxiety prevailing in the camp of investors was the transfer of capital to fiat-backed stablecoins.
The DeFi decentralized finance market has become less attractive not only due to the volatility of tokens but also due to the lack of regulation in this industry.
Bank of America also believes that upgrading Ethereum and moving the network to PoS consensus will not increase the throughput of ETH, and investors are unlikely to become more active in the protocols deployed on Ethereum.