The cryptocurrency market did not enter this week with bullish news either. Bitcoin continues to move around $20,000. In addition, important forecasts for the FED’s September meeting draw the attention of investors. The latest forecast about the FED meeting and Bitcoin price came from the giant American bank JPMorgan.
JPMorgan warns investors about Bitcoin
JPMorgan warns investors about Bitcoin. The bank’s analysts shared a report they prepared with the public yesterday. Accordingly, the bank claimed that the FED, which crypto money investors are watching with curiosity, will make an excessively large interest rate increase. He also stated that this high interest rate hike may surprise investors in September. According to experts, this will be the last major rate hike of the Fed.
The expectations of JPMorgan analysts are quite significant. The famous bank gives financial advice to many companies. If the FED raises interest rates at its September meeting, cryptocurrencies will be adversely affected. This has the potential to trigger a huge selling pressure in the market. However, the Fed made statements that this was the last major rate hike. Therefore, risky assets such as BTC and ETH are likely to recover in the post-September period.
“Something worse is coming”
Recession expectations for the USA also reveal their effects on all investment products. JPMorgan CEO Jamie Dimon recently made a statement. Accordingly, he warned Bitcoin investors, saying that “something worse” could come from a recession. Even the possibility of a recession increases the volatility in the cryptocurrency market. So anything worse than a recession could cause BTC to reach a new low.
However, unlike JPMorgan, banks that do not expect a recession are not few. Another giant American bank, Goldman Sachs, published a note prepared by analysts regarding the Fed and economy expectations. Accordingly, the bank does not expect a recession in global economies for the next 12 months.
Bitcoin, SHIB and altcoins are priced to the FED
The United States has been grappling with a major inflation problem for the past year. The FED is trying to protect the economy as inflation grows with each passing month. The Federal Reserve has taken several steps to reduce inflation through rate hikes by 2022. This process has had a negative impact on BTC and the overall cryptocurrency market.
As we reported as Kriptokoin.com, BTC was trading at $ 69,000 in November of 2021. However, after all these processes, it fell to $ 17,000. However, in the past weeks, data has emerged that reveal that inflation in the US has been on the decline. This, in turn, led to a short-lived rally in BTC and altcoin prices. Behind this rise, the expectation of the FED to decrease the rate of increase was the leading factor.
11938
