JPMorgan’s CEO believes cryptocurrency investors will experience more price crashes.
Despite the underperformance of the global cryptocurrency market in the past month that crashed the prices of the top 10 digital currencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), JPMorgan CEO still believes the worst is yet to come.
JPMorgan CEO: Crypto Prices Will Dip
Jamie Dimon, the CEO of JPMorgan, has warned cryptocurrency investors of upcoming market volatility that will be ushered in by an economic hurricane expected to be introduced by the Federal Reserve.
Speaking at a financial services conference organized by Autonomous Research this week, Dimon noted that investors of the top 10 cryptocurrencies need to prepare themselves for the massive volatility that will hit the nascent market when the Feds begin its so-called quantitative tightening,
According to the JPMorgan exec, while it is imperative for crypto investors to prepare themselves for the upcoming market volatility, the U.S.-based financial institution has also braced itself in preparation for what is to come.
“You better brace yourself. JPMorgan is bracing ourselves and we’re going to be very conservative with our balance sheet. “ Dimon was quoted as saying in a report published by Forbes.
Feds Trying to Mitigate Rising Inflation
It is no longer news that the Federal Reserve is making significant moves to reduce its whopping $9 trillion balance sheet that skyrocketed during the coronavirus (COVID-19) pandemic era.
Part of its quantitative tightening plan also includes increasing interest rates in a bid to mitigate rising inflation rates in the U.S. economy.
While the cryptocurrency market has been remarkable in withstanding the storm of the Federal Reserve’s move to mitigate rising inflation, Dimon believes future measures by the Feds may take a huge toll on global financial markets, including the crypto market.
With the upcoming Fed’s measures expected to be disastrous on financial markets, many would expect the government to not proceed with its quantitative tightening efforts.
However, Dimon disclosed that the Federal Reserve is left with no choice but to implement the stringent measure.
“I said they’re storm clouds, they’re big storm clouds here, It’s a hurricane [and] that hurricane is right out there down the road coming our way. We just don’t know if it’s a minor one or Superstorm Sandy,” Dimon added.
Crypto Market CrisesÂ
The crypto market has plunged drastically from the levels last seen in November 2021. Bitcoin, Ethereum, Binance Coin, XRP, and Cardano, among other cryptocurrencies, have slumped more than 50% since November 2021, with investors not knowing when the storm will be over.
In the last 24 hours, the entire cryptocurrency market is down 2.1% to around $1.2 trillion, which is far from what was recorded in November last year.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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