BoA sees some ‘good news’ for those expecting a ‘bear bounce’ over next few weeks

Strategists at Bank of America saw signs of “good news” amid the carnage in crypto and in speculative technology for those investors holding out for a “bear bounce” during the following weeks.

But in terms of the “biggest picture”, they noted that: “trading pattern of post-bubble assets always furious bear rallies amidst dead sideways trading range for couple of years.”

Against the backdrop of Bitcoin’s 38.2% implosion year-to-date, the strategy team led by Michael Hartnett recalled a USA Today headline from 12 August 2021: “Millenials are quitting jobs to become crypto day traders”.

They also shed some light on the recent meltdown of crypto assets including COIN, which had fallen by 90% or Terra, which was down by 99%,.

Hartnett and his team attributed them to the “unwind” seen in the Nasdaq, low liquidity, pool migration and “whale attacks”.

In turn, those had aggravated the Wall Street “fear and loathing”, fear of venture capital “marks”, “collapse” in private equity and “breakdown” in bank loans – together with the dumping of ‘Big Tech’.

They also noted how the last of the…

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