Bitcoin (BTC) is about halfway through its current bull market, which originated around the March 2020 price low, according to Peter Brandt, a veteran analyst and investor who’s been following commodity markets for more than four decades and serves as CEO of Factor LLC, which he founded in 1980. He’s been given credit for correctly predicting bitcoin’s steep price correction in 2018.
DeFi refers to the fast-growing area of automated, blockchain-based trading and lending platforms that might eventually pose a challenge to banks, Wall Street firms and insurance companies. But not now, says the bank.
“Credit creation is one of the key motors of modern finance. As yet, DeFi doesn’t do anything like this,” the report states.
The Bank of America view is very different from last month’s prediction by JPMorgan Chase, the biggest U.S. bank, that rapid advances in digital assets could present an existential threat to traditional financial companies.