A widely followed crypto strategist says that Bitcoin (BTC) appears vulnerable to a sell-off after losing a significant price level. Meanwhile, JPMorgan CEO Jamie Dimon has urged investors to be prepared for potentially higher interest rates, signaling a possible bearish environment for risky assets like Bitcoin. Here are the latest statements of the big names for BTC…
JPMorgan CEO: Be prepared!
JPMorgan Chase CEO Jamie Dimon issued a stern warning to investors about the potential for higher interest rates. He suggested that interest rates could rise further from the current 5 percent to as high as 7 percent. Dimon stated that we are already witnessing a tightening loan market as banks prefer not to provide additional loans in order to protect their capital. As we reported on Kriptokoin.com, the FED increased the interest rate to 5-5.25 percent in May, signaling a tighter monetary policy. Dimon’s comments could herald a bearish environment for risky assets like Bitcoin. After rising interest rates, the US dollar (DXY) may strengthen and create downward pressure on the cryptocurrency market.
Such a scenario reflects the general movement towards risk aversion among investors. It also leads to potentially wider market selling than many. Moreover, there seems to be an ongoing debate over whether to pause the FED’s next round of rate hikes, scheduled for June. While some Fed policymakers have signaled that they will favor additional rate hikes, others, including New York Fed chairman John Williams, are undecided at the moment, Bloomberg reported. It is not yet clear how this discussion will end. What is clear, however, is the fact that investors should be prepared for a potentially higher interest rate environment.
Credible Crypto: Bitcoin may drop a little more
The so-called analyst, Credible Crypto, told his 340,700 Twitter followers that he thinks Bitcoin could go lower as it continues to trade below the $27,000 resistance. According to the trader, Bitcoin’s recent weakness could lead to a liquidation where BTC is trading below $25,000. “I am a little more neutral in terms of the direction of BTC right now. I think he’s holding the red level switch. If we get that level back, we could hit rock bottom,” he adds. In addition, the analyst says:
If we don’t get it back, we could see a drop from $25,000 to the GREEN line with some wicks falling due to momentum/purges. This will be the last drop below $25,000 that I’ve talked about in previous posts and videos and that we haven’t been able to rule out yet. Remember – a final drop is HEALTHY as long as we stay above $20,000.
Credible Crypto has a dissenting view that Bitcoin will witness a massive spike this year on its way to a new all-time high. In April, the trader predicted that Bitcoin would break the six-digit mark before the end of 2023.
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