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Here’s The Best Timeframe To Invest In Crypto Again – Predicts Bank Of America

19 Oct, 20223 min readAnalytics
Here’s The Best Timeframe To Invest In Crypto Again – Predicts Bank Of America

The crypto market has significantly changed the map of investment portfolios this year. Investors are facing a harsh time as the recent crypto winter has erased 50% of their holdings on average. The community is confused about investment decisions and is actively looking for buying opportunities to generate the maximum profit and make up losses amid the bearish market.

According to a survey by Bank of America Corporation, the crypto market has almost touched the bottom line before making a massive bullish reversal by the beginning of 2023, indicating the best time for investors to buy in the dip and bring a wave in portfolios.

Reason Behind Crypto Market’s Struggle

The crypto sphere is stuck in a closed range as the leading cryptocurrencies are unable to make an upward breakout. The crypto market’s momentum significantly depends on the general stock market. Sometimes, any negative news in the stock market causes turmoil in the crypto market. There is a metric called ‘Beta,’ which indicates the correlation between the stock market and the crypto market.

According to Coinbase’s research, the value of Beta for the crypto market is 2, meaning that it carries twice the price movement of the general stock market. Therefore, it displays a robust correlation with US tech stocks under NASDAQ 100.

This is one of the primary reasons behind the crypto market’s downtrend, as the stock market was negatively impacted by the Federal Reserve’s unexpected CPI data and continuous implementation of interest hikes to 75 bps to control inflation. As the US stock market went down, it plunged the crypto space hard, leading to a significant loss.

Right Time To Invest In Crypto!

According to Bloomberg, the Bank of America’s survey shows that the stock market has almost reached the final capitulation before going bullish in the next year. Chief US strategists of BoA believe that the final capitulation will be achieved by the end of this year as the Fed is now taking necessary steps to bring stability to global economic infrastructure. The survey shows that the stock market is testing the pessimism of investors by drastically dropping in liquidity.

The Bank of America states that investors will get relief by the end of Q1 of 2023 as the Fed will implement further steps to strengthen the US stock market. However, a prominent crypto expert, Florian Grummes, mentioned that the bearish trend might continue for another year or a year and a half.

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