Bitcoin (BTC), the largest cryptocurrency by market capitalization, is currently trading around $20,000. The digital asset has recorded a decline of nearly 7% in the past seven days. In this context, the chief strategist of JPMorgan Asset Management recommends avoiding investing in bitcoin (BTC). But why ? Find out!
Bitcoin volatility risk is high in the markets
David Kelly, chief strategist at JPMorgan Asset Management advises investors against getting into 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 normaltowards the end of 2023. In the meantime, he recommends that investors sell their cryptocurrencies. At the same time, these should stay away from large cap digital assets such as bitcoin (BTC).
It must be said that the statements of the JPMorgan strategist follow the speech given by Jerome Powell recently. Indeed, the chairman of the Fed made statements during the annual meeting of the American central bank.
Jerome Powell’s remarks have troubled entities in the financial market. Indeed, he explained that there will be no cut in short-term interest rates, because the Fed wants above all to bring inflation down 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 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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