As the leading cryptocurrency continues to consolidate in a narrow range, as the on-chain data shows, some investors are expecting an upward move from BTC.
However, investors will wait a little longer for this move. Because Bank of America wrote in its latest report that it expects cryptocurrency trading volumes to remain under pressure.
According to the news of Coindesk, BoF analysts stated that they believe that increases in cryptocurrencies will be limited in the near term, as the majority of retail investors do not enter the market and wait on the sidelines.
BoF analysts led by Alkesh Shah and Andrew Moss made the following statements in the report:
“Low belief on the part of individual investors, limited catalysts for bullishness, and high year-to-date performance of BTC and cryptocurrencies leave the digital asset industry stuck in a trading range with a challenging macro backdrop.
In this context, we expect crypto trading volumes to remain low as the majority of retail investors stay on the sidelines.”
Analysts also added in the report that traditional finance (TradFi) companies and technology firms continue to build blockchain applications focused on demand deposits, repurchase agreements and tokenizing bond issuance.
*Not investment advice