Bank of America predicts instability in the US economy under the incoming presidency of Donald Trump, despite strong economic data. This has raised concerns about the future of the crypto market. Bank of America believes that Trump's protectionist policies could lead to uncertainty and affect economic managers differently. These policies, including potential tariffs on Chinese goods, could raise prices and create uncertainty for investors in the global market, which could have a spillover effect on the crypto market. However, Trump's crypto-friendly policies may also support institutional adoption of cryptocurrencies and promote the growth of the sector. The future of crypto will depend on the interplay between Trump's policies and the decisions of the Federal Reserve. If inflation remains elevated and the Fed does not cut rates, cryptocurrencies like Bitcoin could gain popularity as a store of value.
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