🔥Hold Your Crypto! Bank of America Says Don't Sell Just Yet🖖
Bank of America (BoA) is urging investors not to sell their crypto despite the upcoming Consumer Price Index (CPI) report. With inflation numbers for April 2024 set to be released soon, the bank's message is clear: HODL and keep an eye on the market.
What to Expect from the Upcoming CPI Report
The US Bureau of Labor Statistics is releasing the latest inflation data on May 15, and it's likely to shake things up. Analysts predict that headline inflation will increase by 0.4% and core inflation by 0.3%, keeping prices high above the Federal Reserve's 2% target.
What This Means for Crypto
Historically, summer has been a strong season for stocks, especially during presidential election years. BoA notes that the S&P 500 tends to rally between June and August, with average gains of 3.2%. In election years, this jumps to 7.3%, with the S&P 500 gaining 75% of the time. Bitcoin also shines in these years, boasting an average return of 23.68%.
Don't Sell!
BoA advises against selling right now, pointing out that the market has a tendency to heat up during summer, particularly in election years. This historical trend might mean a boost not just for stocks but for Bitcoin and other cryptocurrencies as well.
Crypto is not just for retail investors anymore. Major institutions like Susquehanna International (holding $1.2 billion in Bitcoin across ten ETFs) and Hightower (with $68 million in Bitcoin through six ETFs) are showing their faith in Bitcoin. This kind of institutional backing could mean that BTC & other cryptos are seen as a hedge against inflation.
Bottom Line: Keep Calm and HODL
While the upcoming CPI report could bring market volatility, BoA advises caution and patience. Don't rush to sell your crypto; historical data suggests that the market could be set for a summer rally, especially with election year trends in the mix. Stay tuned for the latest inflation data, but remember, the long-term prospects for crypto could be very promising.