Bank of America Q1 2024 Earnings: Plunging Profits Can Affect Crypto
Bank of America Q1 2024 earnings show a slump in profits although figures top analyst expectations amid interest rates worries. The bank reported a revenue of $25.98 billion higher than a projected $25.46 billion for the first quarter.
Similarly, net interest income came in at $14.19 billion, above the $13.93 billion projects by StreetAccount. Although key points like deposits and its investment business came better than expected, the Bank of America Q1 2024 earnings pointed to declining profits compared to last year’s highs.
Profits Faces 18% Decline
The bank’s profit fell 18% to 76 cents a share while revenue plummeted 1.6%. The bank posted declining profits of $6.67 billion compared to last year’s figures. Several commentators have pinned the reduced profits on macroeconomic factors like inflation and the Fed’s interest rate policies.
These factors have impacted the cryptocurrency market as investors withdraw funds from riskier assets when there is a rate hike. Undoubtedly, the market saw significant inflows from Q2 2023 as institutional investors flowed to the market on the back of spot Bitcoin ETF applications.
However, the market recorded frequent corrections with related events and reduced sentiment in times of uncertain interest rate policies. Last week crypto assets recorded losses due to geopolitical tensions and the IRS tax deadline that saw investors pay for capital gains.
These outflows wiped out monthly gains from major crypto assets as the price of Bitcoin plunged below $64,000.
Prospects for Bank of America Q1 2024 Earnings
Despite reduced figures, the Bank of America Q1 figures came in better than expected which is a good sign for the market. At this point, institutional investors continue to dominate the market so a better result for traditional markets can have a ripple effect on cryptocurrencies.
The digital asset and stock market correlation shows from recent rebound and retracements in the price of Bitcoin. With the halving set to take center stage, institutional investors will play an important role in inflows into ETFs.
Also Read: 5 Altcoins That Might Recover Before Bitcoin Halving
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