Regulatory failure or necessary preventive measures, just like what’s going to happen with the AI market?
Bank of America (BAC) stated in a recent research report that while the rally in risky investments continues, digital assets have not performed as well as the Nasdaq stock index. Since the beginning of May, digital assets have underperformed the Nasdaq by 24% after experiencing a 52% gain since the start of the year. The bank attributed this underperformance to negative sentiment surrounding digital assets, primarily due to regulatory uncertainty caused by enforcement actions by the U.S. Securities and Exchange Commission (SEC), which has put pressure on token prices. The analysts at Bank of America, Alkesh Shah and Andrew Moss, emphasized that digital asset trading platforms are just one part of a larger ecosystem.
