{"id":57991,"date":"2022-02-17T16:11:00","date_gmt":"2022-02-17T14:11:00","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=57991"},"modified":"2025-09-04T14:28:55","modified_gmt":"2025-09-04T11:28:55","slug":"jpmorgan-strategist-warns-of-crypto-market-crash-after-fed-rate-hike","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/jpmorgan-strategist-warns-of-crypto-market-crash-after-fed-rate-hike\/","title":{"rendered":"JPMorgan strategist warns of crypto market crash after Fed rate hike"},"content":{"rendered":"

Crypto investors will incur huge losses as the Fed<\/span> raises interest rates and ends the era of ‘crazy speculation’. This was said by JPMorgan senior strategist David Kelly in an interview with Business Insider<\/a>.<\/p>\n

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At some point I expect a sharp decline in digital asset prices. They are vulnerable to tighter monetary policy<\/em>, the expert said.<\/p>\n<\/blockquote>\n

Kelly compared cryptocurrencies to ‘magic powder’. Interest in them was sparked by the Fed’s stimulus policy, which prompted investors to move away from yieldless bonds toward riskier assets.<\/p>\n

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If real interest rates move back into positive territory, you will deprive yourself of crazy ideas about cash and direct funds to projects with real economic returns. Anything with a very high valuation will be vulnerable if the Fed acts aggressively early<\/em>, he explained.<\/p>\n<\/blockquote>\n

Earlier, at the press conference following the January meeting, the Fed Chair Jerome Powell did not rule out<\/a> raising the key rate in March by 50 basis points. He also allowed tightening monetary policy at every meeting.<\/p>\n

In January, Bitcoin fell by 7.5%<\/a> to below $43,000, according to the minutes published for the December Fed meeting.<\/p>\n

In the transcript of the latest rate decision, the Fed noted<\/a> rising risks to financial stability tied to the rapid growth of crypto assets and DeFi platforms.<\/p>\n

Subscribe to ForkLog’s channel on YouTube<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

Crypto investors will suffer enormous losses as the Fed raises rates and ends the era of ‘crazy speculation,’ said JPMorgan senior strategist David Kelly in an interview with Business Insider.<\/p>\n","protected":false},"author":1,"featured_media":57992,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[480,229,1138],"class_list":["post-57991","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin-price","tag-jpmorgan","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/57991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=57991"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/57991\/revisions"}],"predecessor-version":[{"id":57993,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/57991\/revisions\/57993"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/57992"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=57991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=57991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=57991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}