JPMorgan warns crypto investors of huge losses

The era of “crazy speculation” in the digital asset market will soon end, says the chiefinvestment bank global strategist David Kelly.

The cryptocurrency market will continue to fall asThe US Federal Reserve will raise interest rates, JPMorgan chief global strategist David Kelly said in an interview with Business Insider. According to him, the actions of the Fed will put an end to the era of "crazy speculation" in the digital asset market.

“I am waiting for a huge decline in the cryptocurrency market, because there is nothing there,” Kelly said.

A JPMorgan strategist explained that with an increaseinterest rates, investors stop investing in "crazy ideas" because they prefer projects that bring real economic returns. Kelly attributed the significant growth of the crypto market in recent years to the stimulus measures of the Fed in connection with the pandemic, which provoked a decrease in bond yields. This has encouraged investors to invest in cryptocurrencies and other high-risk assets, Kelly explained.

At the end of January, the price of bitcoin for the first time since July 2021of the year decreased to the level of $32.8 thousand. Then the total capitalization of the cryptocurrency market fell below $1.7 trillion. As of February 17, the first cryptocurrency is trading at $42.2 thousand, and the digital asset market is valued at $2 trillion, according to CoinGecko.

Formerly Vice Chairman of the Board of Directorsof Berkshire Hathaway and Warren Buffett's longtime partner, 98-year-old Charles Munger said he was proud of not investing in digital assets and compared cryptocurrencies to a sexually transmitted disease.

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