JPMorgan’s David Kelly thinks the crypto will come under more downward pressure after the Fed signals there will be no dovish pivot
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David Kelly, chief global strategist at JPMorgan Asset Management, says investors should get rid of cryptocurrencies, Bloomberg reports. Kelly is convinced that the continued warmongering of the US Federal Reserve will cause more problems for digital assets.
It is also bearish on large-cap tech stocks. Bitcoin trades in tandem with heavy tech
The crypto market took a bearish turn after Fed Chairman Jerome Powell said the central bank would continue its aggressive campaign to raise interest rates at the Jackson Hole conference. Bitcoin and top altcoins erased their gains due to Powell’s bearish remarks.
On Monday, Minneapolis Federal Reserve Chairman Neel Kashkari said he was “pleased” with the market selloff because it means investors understand the Fed is fully committed to getting inflation back to 2%. Kashkari says he was “not excited” about the stock market rally that took place in late July after the central bank announced its second consecutive rate hike of 75 basis points.
Last August, Kashkari said crypto was “95% fraud, hype, noise and confusion.”
Last month, JPMorgan noted that the cost of producing the leading cryptocurrency had fallen to just $13,000.