Senior JPMorgan strategist David Kelly said the Fed continues to raise interest rates. cryptocurrencies He claimed it would decline further.
Kelly said in his statements on the subject:
“I think there will be huge losses for cryptocurrencies when the time comes because there is nothing underlying these assets.”
The world’s largest cryptocurrency bitcoinis watching away from the record high of about $ 69,000 reached in November.
However, it is thought that the Fed will increase interest rates more than once in 2022 in order to put a stop to the record high inflation in the USA. With the Fed’s moves, investors began to move away from risky investments.
David Kelly: “The Real Danger for Cryptocurrencies Is Not The Fed, It Is The Empty Hole Of These Digital Assets”
However, Kelly argued that the real danger to digital assets is not the Fed, but the fact that they have no value at all:
“All these concepts are illusions and are extremely sensitive to high interest rates.”
The company Kelly represents, JPMorgan, recently Decentraland and claimed that the Metaverse sector could reach an annual size of 1 trillion dollars. JPMorgan and Kelly seem to disagree on this issue.
Kelly said that the Fed kept bond yields at extremely low levels at the height of the coronavirus pandemic, with investors turning to highly speculative investments such as cryptocurrencies and technology company stocks:
“If you keep interest rates high, you reduce the amount of cash flowing into crazy projects that can have positive real economic returns.”
*Not investment advice.