David Kelly, chief global strategist at JPMorgan Asset Management, claims that investors should dump cryptocurrencies, Bloomberg reports. Kelly is convinced that the persistent hawkishness of the U.S. Federal Reserve will spell more trouble for digital assets.
He is also bearish on large-cap tech stocks. Bitcoin has been trading in tandem with the tech-heavy Nasdaq 100 index this year, failing to act as an inflation hedge. The Bitcoin price is trading above $20,000 at press time after falling below the pivotal level during the weekend.
The crypto market took a sharp bearish turn after Fed Chair Jerome Powell said that the central bank would continue its aggressive campaign to raise interest rates at the Jackson Hole conference. Bitcoin and top altcoins erased their gains due to Powell's bearish remarks.
On Monday, Minneapolis Federal Reserve Bank President Neel Kashkari said that he was "happy" about the market sell-off since it means that investors understand that the Fed is fully committed to bringing inflation back to 2%. Kashkari says that he was "not excited" by the stock market rally that took place in late July after the central bank announced its second consecutive 75-basis-point rate hike.
Last August, Kashkari said that crypto was "95 percent fraud, hype, noise, and confusion."
Last month, JPMorgan noted that the top cryptocurrency’s cost of production dropped to just $13,000.