Bank of America highlights a looming risk of multiple compression in equity markets that could adversely impact Bitcoin, which now behaves like a high-volatility equity beta rather than a diversification asset. The firm's analysis points to structural pressures from factors including earnings downgrades, increased IPO supply, rising leverage, and software sector weakness linked to AI concerns. Bitcoin's liquidity and ETF-linked mechanics could amplify outflows and liquidations as institutional risk-off sentiment accelerates market sell-offs.

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