In an analysis of cryptocurrency flows between personal and exchange-based wallets shows a “lack of directional conviction” in the market, Bank of America said in a note entitled “Digital Assets: In the Flow.”
The analysis noted policy tightening by the U.S. Federal Reserve and macroeconomic headwinds are likely to have limited upside gains for the cryptocurrencies over the next six months. This won’t, however, be a “crypto winter” given the level of user adoption and growth in development activity, analysts led by Alkesh Shah wrote in the note Friday.
The current fund outflow suggests buying on dips are muted exchange inflows for ether show the potential for continued price headwinds, the bank said.
