Bank of America: Cryptocurrencies outperformed stocks in the Fed-initiated recession

Bank of America warns that the Federal Reserve's recent moves could lead to a recession, but cryptocurrencies could emerge as winners.

Bitcoin and other cryptocurrencies could outperform bonds and stocks in a recession, said Michael Hartnett, chief investment strategist at Bank of America. In a recent article, he suggested that the Federal Reserve's new approach could force the U.S. and much of the rest of the world into this situation.

Will Cryptocurrencies Boom During the Coming Recession?

After years of trying to combat the effects of the COVID-19 epidemic by expanding its balance sheet, which is currently worth more than $9 trillion, the U.S. central bank changed its tune in early 2022. That is, after more than tripling its balance sheet since March 2020, the Fed has decided to start reducing the size of its assets, which some sources say could soon shrink by as much as $95 billion a month.