Bitcoin (BTC), the largest cryptocurrency by market capitalization, is currently trading around $20,000. The digital asset has recorded a decline of almost 7% in the last seven days. In this context, the main strategists of JPMorgan Asset Management recommend avoiding investing in bitcoin (BTC). But why? To find out!
Bitcoin volatility risk is high on the markets
David Kelly, chief strategist at JPMorgan Asset Management advises investors not to enter the bitcoin (BTC) market. According to him, the risk of recession and volatility is currently high in the financial markets. In this regard, he said:The economy now has one foot in recession and one foot on the banana skin.“.
Kelly believes the global economy will “more normaltowards the end of 2023. In the meantime, he recommends that investors sell cryptocurrencies. At the same time, these should stay away from large cap digital assets such as bitcoin (BTC).
It must be said that JPMorgan’s strategy statements follow Jerome Powell’s recent speech. In fact, the chairman of the Fed made remarks during the annual meeting of the American central bank.
Jerome Powell’s statements troubled entities in the financial market. In fact, he explained that there will be no reduction in short-term interest rates, because the Fed wants above all to bring inflation down to 2%. Your cells,the Federal Reserve overestimates the strength of the US economy“.
Because of the high risk of a recession, JPMorgan’s chief strategist said large-cap assets like bitcoin (BTC) should be avoided. David Kelly recommends “overweight US and international stocks, as well as stocks with relatively low price-earnings ratios“.
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Far from dampening my enthusiasm, an unsuccessful investment in cryptocurrency in 2017 only increased my enthusiasm. So I decided to study and understand the blockchain and its many uses and pass my pen knowledge related to this ecosystem.