The Bank of America Drops 33% of Profits in a Year, Is Crypto to Blame?

The Bank of America fell by 33% in profits this Q2 in comparison to last year’s Q2.
It fell from $9.2 billion in Q2 2021 to $6.2 billion in Q2 2022.
Traditional and CeFi firms are struggling as more crypto adopters take cautious measures.

The Bank of America saw a profit of $6.2 billion in Q2. This indicates a 33% fall in profits as the entity saw a profit of $9.2 billion in the same quarter of 2021. Looks like the crypto industry isn’t the only industry facing a difficult financial winter.

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Based on the responses to the tweet, it seems that many are unsurprised. This is likely due to the many harsh incidents taking place on a global scale. While some point to rising prices of oil, fuel, and commodities, others blame the Russia-Ukraine war.

Still others are placing blame on the fact that many are shifting to crypto investments and DeFi markets over traditional finance and CeFi markets. Adding on, one response states that the Bank of America has itself to blame.

In detail, this tweet says that the bank released some of their reserves that were set aside to deal with non-performing loans. To this some say, the move should have increased profits, yet the entity underperformed during the quarter.

As for the crypto aspect, it seems more and more investors are taking their investing plans elsewhere. That is to say, crypto holders are shifting their crypto holdings from crypto exchanges to hold them in private wallets.

This is an understandable move as many exchanges chose to freeze assets on their exchanges to survive the crypto winter. Some companies have not been so lucky. For instance, Celsius Network filed for Chapter 11 bankruptcy. By moving crypto from exchanges, holders and investors will never lose control over their funds. To highlight, 38,262 Bitcoin (BTC) have been taken off crypto exchanges in the last 30 days alone. According to Watcher Guru, this amount is estimated to be around $802.33 million.

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Lauren Cole

A focused and vigilant storyteller for all things blockchain and cryptocurrency. Besides consuming every piece of literature about the metaverse, she can often be found at industry convections looking for the latest scoop.