‘Very, Very Serious’ – JPMorgan CEO Issues Strong ‘Panic’ Warning That Could Hit Bitcoin, Ethereum and Crypto Price
Bitcoin
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Bitcoin price has failed to hold on to gains above $20,000 per bitcoin, with the second largest cryptocurrency, ethereum, also trending lower – despite a top US regulator making a surprise crypto price prediction.
Now, as traders try to guess exactly when the Federal Reserve will “pivot” from its hawkish stance, one of Wall Street’s most influential CEOs has warned of growing market panic that could send stock markets down another 20%, potentially dragging down the price of bitcoin, ethereum and other cryptocurrencies with them.
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JPMorgan CEO Jamie Dimon has warned that the Federal Reserve will pressure the US … [+]
“These are very, very serious things, which I think will probably push the US and the world — I mean, Europe is already in recession — and they’ll probably put the US into some sort of recession six to nine months from now,” the JPMorgan chief told Jamie Dimon CNBC in an interview, citing rapidly rising interest rates and Russia’s invasion of Ukraine as key economic risk factors.
“This is serious stuff,” said Dimon, an outspoken bitcoin and crypto critic, adding that the stock market could fall another 20%. The bitcoin, ethereum, and crypto markets are closely tied to the stock market, especially high-growth technology companies that have seen their value explode over the past two years.
“The next 20% would be much more painful than the first,” Dimon said. Earlier this year, Dimon warned that he was preparing JPMorgan for what he called a financial “hurricane.”
The US central bank has embarked on a series of huge interest rate hikes this year, increasing pressure on stock markets and asset prices across the board as the Fed tries to rein in inflation.
Dimon believes the Fed, which has raised interest rates by 0.75 basis points at its last three meetings, “waited too long and did too little” as inflation rose to a 40-year high. “And you know, from here, let’s all wish him [Fed chair Jerome Powell] success and fingers crossed that they were able to slow down the economy enough that whatever it is is mild – and it’s possible,” he said.
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The Bitcoin price has crashed over the past year, losing over 70% of its value and pulling down … [+]
Bitcoin and crypto traders are expecting volatility around this week’s consumer price index data, out on Thursday, which is expected to show that inflation has eased back slightly to just above 8%.
“Now the bulls need to defend $19,500 to keep the chances of a rally alive,” Joe DiPasquale, managing director of bitcoin and crypto hedge fund BitBull Capital, said in an emailed statement.
“Bitcoin’s failure to break $20,500 has led to a correction. In the event that support breaks, we could look towards $19,000 and below. However, more volatility is expected this month due to CPI data.”
