Bank of America has seen a massive drop in cryptocurrency users since November due to a massive price drop.
bank of america According to data published in its most recent report, usage has fallen by more than 50%.
Charlotte, a North Carolina-based banking institution, says the number of customers with cryptocurrency exposure dropped from less than 500,000 people in May. In November, for comparison, it topped over a million active crypto users.
The latest data highlights the deteriorating sentiment within the industry, triggered by a sharp drop in market prices.David Tinsley’s Bank of America claims that the collapse of the Terra stablecoin has led to a market correction.
as Reported by U.TodaySome analysts expect the largest cryptocurrency to remain under pressure due to the Federal Reserve’s harsh monetary policy which is meant to tame inflation.
Earlier today, bitcoin fell to $19,281, reaching an all-time high of $20,440 since July 1.
Meanwhile, the US Dollar Index (DXY) rose to 106.5, the highest level since December 2002.
When the greenback undergoes major rallies, riskier assets such as bitcoin become severely vulnerable. as Reported by U.TodaySeasoned trader Peter Brandt correctly noted that the US Dollar was in the midst of a major upside breakout last week.
Unlike some other US-based US banking institutions, Bank of America has yet to dip its toes into crypto services. one in recent interview With Yahoo! Finance, CEO Brian T. Moynihan clarified that he didn’t feel like the banking giant was missing “anything.”
In May, the research arm of Bank of America concluded that bitcoin cannot serve as a portfolio diversification after failing as an inflation hedge due to its high correlation with stocks.