Fed sings the eagle song!JPMorgan strategist ‘recommends selling’ bitcoin, cryptocurrencies

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Fed sings the eagle song!JPMorgan strategist ‘recommends selling’ bitcoin, cryptocurrencies
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After Fed Chairman Powell reiterated the central bank’s determination to raise interest rates to fight inflation, completely dispelling speculation of a dovish turn in 2023, JPMorgan Chase global strategist David Kelly has proposed to cryptocurrency investors who are concerned about the direction of the market. some suggestions.

David Kelly said that the best way to invest at this stage is to look at valuations, don’t focus on short-term directions, and avoid large technology stocks and Bitcoin, and reduce your holdings of cryptocurrencies. Thus he said:

The economy is now in recession with one foot on a banana peel. Overweight value stocks, as well as stocks with relatively low price-to-earnings ratios, are recommended.

David Kelly: Selling Bitcoin and Cryptocurrencies

Both traditional financial markets and cryptocurrency markets have seen sharp declines since the start of the year amid fears that the Federal Reserve will tighten monetary policy to curb inflation, leading to a recession in the U.S. economy.

Bitcoin briefly dipped below $20,000 for the first time since mid-July as investors’ risk appetite waned following Powell’s comments last week on “continuous rate hikes.” David Kelly believes that the Fed’s stubbornly hawkish stance will cause more trouble for the cryptocurrency market.

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According to David Kelly, investors should steer clear of big tech stocks, bitcoin and cryptocurrencies right now. He expects more volatility in financial markets and a high risk of a recession that will not return to normal until late next year.

Risk assets continue to struggle

Many experts agree that risk assets will continue to struggle due to the Fed’s recent messages that it will continue to raise interest rates. Edward Moya, senior market analyst at Oanda, said this aggressive approach could also trigger an economic slowdown:

Bitcoin weakened after Federal Reserve Chairman Powell reiterated that he would tighten policy to curb inflation. Risk assets are struggling because Powell will remain strong against inflation, even if the U.S. economy slips into recession.

This article Fed sings the eagle song! JPMorgan Chase strategists “recommended to sell” Bitcoin, cryptocurrencies first appeared on Blockers.

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