JP Morgan Awaits Bitcoin Rally: Here’s the Date

JP Morgan Awaits Bitcoin Rally: Here's Its History

Macroeconomic problems hit the cryptocurrency market hard, creating a recession that has been going on for a while. Consumer spending data, on the other hand, showed that even the Fed’s current hawkish stance was insufficient, heralding tougher measures. As a result of all these developments, it is expected that the hawkish attitude will continue and interest rates will be increased at a higher rate. While all this negative news continues, the financial services giant JP Morganannounced that it expects a strong rally in risk assets markets such as crypto.

bitcoinIt is down over 12% in the last 7 days and is trading below the $20,000 level. Ethereum continued its decline after the merger and has lost close to 20% in the last 7 days. The entire altcoin market has faced a massive drop.

JP Morgan Awaits Bitcoin Rally: Here's the Date

JP Morgan Expects Strong Bitcoin Rally

JP Morgan, on the other hand, believes that risky assets and the bottom of the stock market are very close. JP Morgan Global President Marko Kolanovic shared a statement revealing that the market is in an upward trend. To bolster this sentiment, Kolanovic cited better-than-expected performance of company earnings. Low investor positioning will also help the market in the long run.

Kolanovic thinks that the same determination will continue regarding the Fed’s hawkish stance. According to the president, the Fed will FOMC meetingIt will decide to raise interest rates by 75 basis points. He also thinks that an increase of 100 basis points in the future cannot be ruled out. However, he believes that “firmly fixed long-term inflation expectations” will prevent the market from slipping further.

CNBC’s popular analyst Jim Cramershared a comment revealing that inflation hurt stocks and company earnings. However, due to the low positioning of most traders, any good news could encourage a rally.

Kolanovic is one of those who believe that the Fed will start lowering interest rates at the beginning of 2023 and this will support the stock market. A strong rally may follow this development.

What Will Be the Fed’s Decision?

The Fed will make its decision on the next rate hike at tomorrow’s FOMC meeting. While the CME Fed Watch tool expects a 75 bps increase, crypto analysts like Michael van de Poppe believe a consensus has formed around a 100 bps increase.

You can follow the current price action here.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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