Bank of America does not Foresee a large-scale "crypto winter"

The dynamics of the movement of cryptocurrencies between personal and exchange wallets indicates that investors do not have certain expectations regarding how the market will behave further, Bank of America analysts say in a new report.

The reduction of the Fed's economic stimulus measures and other macroeconomic prerequisites are likely to limit the growth of the crypto market over the next six months, the authors say. This, however, will not result in a large-scale "crypto-winter", taking into account the current levels of distribution of cryptocurrencies among users and the activity of developers, they are sure.

Weak outflows of bitcoins from exchanges indicate that investors' interest in buying cryptocurrencies remains limited. Ether continues to flow to the exchanges at a high rate and may again be under pressure, Bank of America says. At the same time, there is a significant slowdown in the influx of stablecoins for the second week in a row. This suggests that investors are in no hurry to make decisions in the current conditions.

According to Glassnode, bitcoin exchange balances increased by $84 million in a week, ether - by $362.5 million, and $261 million was withdrawn from trading platforms in USDT (ERC20).

Bank of America analysts also believe that it will be difficult for the cryptocurrency market to exit the current trading range until concerns about a possible recession are eliminated.