JPMorgan Strategist Advises Investors to Sell Bitcoin and Cryptocurrency After Fed’s Hawkish Posture

With the US Federal Reserve strengthening its anti-inflation stance and refusing to talk about possible monetary easing. JPMorgan’s chief global strategist, David Kelly, has offered some suggestions for crypto investors concerned about the direction of the market.

In an interview Friday after Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole, Wyoming, Kelly said the best way to be in a position right now is to focus on values ​​and avoid looking at the short-term trend.

The economy has gone ahead in a recession and is on the banana peel now. Make sure to increase the weight of US and international value, as well as stocks with relatively low P/E ratios.”

Kelly: Selling Bitcoin and Cryptocurrency

The traditional market as well as the cryptocurrency market has suffered significant declines since the beginning of the year due to fears of tightening monetary policy to curb inflation that has reached its highest levels in forty years. As a result, the economy is slowly drifting into recession.

After Powell emphasized that interest rates may need to be elevated to reduce inflation in his latest speech, Bitcoin briefly fell below $20,000 for the first time since mid-July, as risk appetite waned. According to Kelly, investors should now avoid major tech stocks, bitcoin, and cryptocurrencies in general. He expects more fluctuations in leakage and a high risk of a recession.

However, the strategist believes the economy will feel more normal by the end of next year. Kelly also added that “the Fed is overestimating the strength of the US economy because it feels guilty about the fact that inflation has risen under their watch.”

Dangerous assets to continue the fight

Many experts believe risky assets will continue to struggle while Powell tackles inflation with restrictive monetary policy. Edward Moya, chief market analyst at Oanda, said in a recent email that this aggressive strategy could also trigger an economic downturn.

“Bitcoin weakened after Fed Chairman Powell did not blink in his reiteration that the Fed will tighten policy to bring down inflation. Risky assets are struggling as Powell’s fight against inflation will remain fierce even if it leads to an economic slowdown.”

A JPMorgan strategist advised investors to sell Bitcoin and Crypto after Hawkish Stance’s stance on the Federal Reserve first appeared on CryptoPotato.

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