JP Morgan executives expect a massive crypto rally to come

Since its launch in mid-November 2021, the digital currency market has been in pretty bad shape for almost a year. Around this time, Bitcoin and most altcoins hit a new ATH, and the cycle that cryptocurrencies go through leads directly to price declines that have pushed prices downwards ever since.

Unfavorable macroeconomic conditions have also exacerbated the price crash, and the US Federal Reserve has so far been unable to prevent inflation significantly. Although the situation looks bad, some believe that things will turn around relatively quickly.

Of course, most skeptics would argue that this is just wishful thinking by optimists, but there are influential and respected global heads of financial services leader JP Morgan. Such arguments lose weight when positive expectations are brought to them from the person.

JP Morgan executives expect a rally in coming months

According to Marco Kolanovic, Global Head of JP Morgan, there are reasons to look forward to the near future of the cryptocurrency industry. Kolanovich clarified his views on the matter, noting that he and JP Morgan generally believe the bottom of so-called risk assets is very near, and that the same is true for the stock market. Because of that, he is very bullish in the market in its current state.

JP Morgan is calling the stock market bottom here

idea?

— Gurgavin (@gurgavin) September 19, 2022

Currently, the market is not very impressive as Bitcoin’s price fell by more than 12% in a week, falling below $18.5k for the first time in a long time. Bitcoin is, of course, just the tip of the iceberg, as is Ethereum, the second-largest cryptocurrency by market capitalization. The rest of the altcoin market is in a similar state, but despite this, Kolanovic said corporate earnings performance is still significantly above expectations. This directly supports the bullish stance of JP Morgan and Kolanovic.

Kolanovic added that low investor positioning is also good for the market in the long run. As for the Federal Reserve, I expect Marko to continue with the hawkish stance he has demonstrated. He predicts that the Fed has decided that he will settle for a 75 bps rate hike, but that in the future he could also raise rates by 100 bps.

According to him, negative market expectations that predict long-term inflation would actually have the opposite effect and prevent further market declines. He concluded by stating that the Fed will most likely start cutting rates in May and likely start cutting rates in early 2023, with strong gains expected as a result.

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