Despite the poor performance of the global crypto market last month, which plunged the prices of the top 10 cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), JPMorgan CEO is still the worst yet. He believes it didn’t happen.
“Prices of BTC, ETH, XRP and others will drop further”
JPMorgan CEO Jamie Dimon warns crypto investors of a market volatility that will be triggered by an economic hurricane expected to be brought by the Federal Reserve.
Speaking at a financial services conference hosted by Autonomous Research this week, Jamie Dimon said investors of the top 10 cryptocurrencies are bracing themselves for the massive volatility that will hit the nascent market as the Fed begins its so-called quantitative tightening (QT). records needed.
According to JPMorgan executive, while crypto investors must prepare for the upcoming market volatility, the US-based financial institution is also preparing itself to prepare for what’s to come. Jamie Dimon said, “You better prepare yourself. “At JPMorgan we are preparing ourselves and we will be very conservative about our balance sheet.”
“Fed is trying to control rising inflation”
It’s not news anymore that the Federal Reserve, which you follow in the news of Kriptokoin.com, has made important moves to reduce its rapidly rising $9 trillion balance sheet during the coronavirus pandemic period.
Part of the quantitative tightening plan includes raising interest rates in order to curb rising inflation rates in the US economy. While the cryptocurrency market is bracing against the storm of the Federal Reserve’s move to curb rising inflation, Jamie Dimon believes the Fed’s future measures could have a major impact on global financial markets, including the crypto market.
While the upcoming Fed’s measures are expected to bring disaster on financial markets, many will expect the government not to continue its quantitative tightening efforts. But Jamie Dimon states that the Federal Reserve has no choice but to enforce strict action, and explains:
I said they were storm clouds, big storm clouds. But it’s a hurricane, and that hurricane is right over there, coming towards us down the road. We don’t know if it’s just a minor storm or Superstorm Sandy.
Crypto market crises
The crypto market has dropped drastically from levels last seen in November 2021. BTC, ETH, BNB, XRP and ADA, among other cryptocurrencies, have lost more than 50% since November 2021, and investors do not know when the storm will come.
In the last 24 hours, the entire cryptocurrency market is a long way off from what was recorded in November last year, down 2.1% on a daily basis to nearly $1.2 trillion.
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