JPMorgan Asset Management’s Chief Global Strategist, David Kelly is advising investors to stay clear of Bitcoin (BTC) and other ‘risky assets’ while the U.S. economy is facing a recession.
Speaking with Bloomberg, the strategists said that a recession is looming with more and continued volatility in markets on the horizon:
“The economy has got one foot into a recession and the other on the banana peel now.”
Kelly believes that the U.S. economy will somewhat turn back to normal by the end of 2023.
The JP Morgan Chief’s comments follow the speech of U.S. Federal Reserve Chairman, Jerome Powell, last week which shook up the markets, causing stocks and crypto to lose 10% in the blink of an eye. Powell said the Fed is not going to lower interest rates in the short term as it is committed to bringing inflation down to 2%:
“The Federal Reserve is overestimating the strength of the US economy as it feels guilty about the fact that inflation went up under their watch.”
With uncertainly hanging over the markets, Kelly suggest that it is best to keep away from Bitcoin and other tech stocks. If you hold crypto assets, you might want to sell them now, he said.
At the time of writing, the most valuable cryptocurrency by market cap, Bitcoin, is moving hands at $19,901 according to CoinMarketCap, down almost 8.5% in the past week.
The post JPMorgan: Avoid Bitcoin and Crypto Amid Fears of Recession appeared first on iGaming.org.
Source: Igaming
