JPMorgan Strategist tells investors to sell their Bitcoin & other cryptocurrencies after the news that the US Federal Reserve is upping the ante against inflation and denying any talk of monetary policy easing. A JPMorgan strategist called David Kelly (chief global strategist) has given some recommendations for cryptocurrency investors concerned about the market’s path.
Kelly said in an interview Friday, following Fed Chair Jerome Powell’s address in Jackson Hole, Wyoming, that the best approach to be positioned currently is to focus on values rather than short-term direction.
“The economy has got one foot into a recession and the other on the banana peel now. Make sure you overweight US and international value, as well as stocks with relatively low price-to-earnings ratio.”
Sell Bitcoin And Crypto, Says Kelly
Since the beginning of the year, both the traditional and crypto markets have seen significant falls due to worries about stricter monetary measures to combat inflation, which has reached the highest levels in forty years. As a result, the economy is gradually slipping into recession.
In response to Powell’s recent remarks that interest rates may need to remain high in order to contain inflation, Bitcoin temporarily fell below $20,000 for the first time since mid-July, as risk appetite waned. Kelly advises investors to avoid large-cap tech stocks, Bitcoin, and cryptocurrency in general. He anticipates more volatility and a significant chance of a recession.
Nonetheless, the expert expects that the economy will return to normalcy by the end of next year. Kelly also stated:
“Federal Reserve is overestimating the strength of the US economy as it feels guilty about the fact that inflation went up under their watch.”
Now the JPMorgan Strategist tells investors to sell their Bitcoin & other cryptos.
Risky Assets Will Continue To Struggle
Many analysts believe riskier assets will continue to struggle as Powell fights inflation with a tight monetary policy. According to Edward Moya, senior market analyst at Oanda, in a recent email, this aggressive strategy may potentially cause an economic downturn.
“Bitcoin weakened after Fed Chair Powell didn’t blink with his reiteration that the Fed will tighten policy to bring down inflation. Risky assets are struggling as Powell’s fight against inflation will remain aggressive even as it will trigger an economic slowdown.”
Read the latest crypto news.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]