Bitcoin (BTC), the first cryptocurrency in terms of market capitalization, is currently trading at around $20,000. The digital asset has recorded a decline of almost 7% over the past seven days. In this context, the chief strategist of JPMorgan Asset Management recommends avoiding investing in bitcoin (BTC). But, why? Discover it!
The risk of bitcoin volatility is high in the markets
David Kelly, chief strategist at JPMorgan Asset Management advises investors against entering 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 has one foot in a recession and the other on a banana peel now. ».
Kelly believes that the global economy will become “ more normal ”towards the end of the year 2023. In the meantime, he recommends that investors sell their cryptocurrencies. At the same time, these should staying away from large-cap digital assets such as bitcoin (BTC).
It must be said that the statements of the JPMorgan strategist follow the speech delivered by Jerome Powell recently. Indeed, the president of the Fed made statements during the annual meeting of the US central bank.
Jerome Powell’s words have troubled entities in the financial market. Indeed, he explained that there will be no interest rate cuts in the short term, because the Fed wants above all to reduce inflation to 2%. For Kelly,” the Federal Reserve overestimates the strength of the US economy ».
Due to a high risk of recession, JPMorgan’s chief strategist said that large-cap assets like bitcoin (BTC) should be avoided. David Kelly recommends to “ overweight US and international stocks, as well as stocks with a relatively low price-to-earnings ratio ».
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Far from having cooled my ardor, an unsuccessful investment in 2017 on a cryptocurrency only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay information related to this ecosystem with my pen.