Analysis: Bank of America Warns of Crypto Market Risks, Traders Focus on Key Inflation Data This Week

Odaily According to reports, Bitcoin and gold have diverged in recent months, with Bitcoin prices falling while gold prices have surged. As the CEO of Bank of America issues a risk warning for the cryptocurrency market, traders are on high alert, anticipating that inflation data to be released this week will exceed expectations, potentially triggering an "unprecedented stagflation" warning. It is reported that economists from Barclays and Morgan Stanley have raised their forecasts for the December U.S. Personal Consumption Expenditures (PCE) price index, scheduled for release on Thursday, to 2.8% and 2.9% respectively. This data may reignite concerns about so-called "stagflation," characterized by sluggish economic growth alongside soaring prices. (Forbes)