Cryptocurrencies will suffer huge losses as the Fed stops “crazy” speculation, raising rates, says JPMorgan strategist

excerpts, my translation

Cryptocurrencies are likely to fall further, according to a senior strategist at JPMorgan.as the Federal Reserve raises interest rates and ends the era of “crazy” speculation.

“At some stage, I expect to see huge losses in crypto because there is nothing there,” David Kelly, chief global strategist at JPMorgan Asset Management, told Insider.

Cryptocurrencies have already fallen sharply, with Bitcoin falling fromhigh above $68,000 in November to $44,000 on Wednesday. The market capitalization of all cryptocurrencies has fallen from more than $3 trillion in November to less than $2 trillion today.

Investors have turned away from riskier investments given the Fed is preparing to raise interest rates multiple times in 2022 in an attempt to tame inflation.

But Kelly said the rout is not over yet, andhe argues that digital assets are particularly at risk because they serve no purpose. – It's still fairy dust and it's very vulnerable to higher interest rates

markets.businessinsider.com/news/currencies/cryptocurrency-outlook-prices-massive-losses-federal-reserve-interest-rates-jpmorgan-2022-2