‘Very, Very Serious’—JPMorgan CEO Issues A Stark ‘Panic’ Warning That Could Hit The Price Of Bitcoin, Ethereum And Crypto

Bitcoin
BTC
, ethereum and other cryptocurrencies have been trading sideways over the last month, with the market braced for data that some think will decide its “fate.”

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The bitcoin price has failed to hold onto gains over $20,000 per bitcoin, with the second-largest cryptocurrency, ethereum, also trending lower—despite a top US regulator making a surprise crypto price prediction.

Now, as traders try to guess exactly when the Federal Reserve will “pivot” from its hawkish stanceone of Wall Street’s most influential chief executives has warned of growing market “panic” that could send stock markets another 20% lower, potentially dragging the price of bitcoin, ethereum and other cryptocurrencies with them.

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“These are very, very serious things, which I think are likely to push the US and the world—I mean, Europe is already in recession—and they’re likely to put the US in some kind of recession six to nine months from now,” JPMorgan CEO Jamie Dimon told CNBC in a year interviewreferring to rapidly rising interest rates and Russia’s invasion of Ukraine as key factors stoking economic risk.

“This is serious stuff,” said Dimon, an outspoken bitcoin and crypto critic, adding the stock market could fall another 20%. The bitcoin, ethereum and crypto market is closely linked to the stock market, especially high-growth technology companies that saw their value explode over the last two years.

“The next 20% would be much more painful than the first,” Dimon said. Earlier this year, Dimon warned he was preparing JPMorgan for what he called an economic “hurricane.”

The US Federal Reserve has embarked on a series of huge interest rate hikes this year, piling pressure on stock markets and asset prices across the board as the Fed tries to rein in rampant inflation.

Dimon thinks the Fed, which has raised interest rates by 0.75 points at its last three meetings, “waited too long and did too little” as inflation ramped up to a 40-year high. “And, you know, from here, let’s all wish him [Fed chair Jerome Powell] success and keep our fingers crossed that they managed to slow down the economy enough so that whatever it is, is mild—and it is possible,” he said.

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MORE FROM FORBES‘Tide’ Turning? Why Bitcoin, Ethereum And Crypto Could Be Primed For A Huge October Price Boom

Bitcoin and crypto traders are expecting volatility around this week’s consumer price index data, out on Thursday, that’s expected to show inflation is fallen back slightly to just over 8%.

“Now the bulls will need to defend $19,500 in order to keep chances of a rally alive,” Joe DiPasquale, the chief executive of bitcoin and crypto hedge fund BitBull Capital, said in emailed comments.

“Bitcoin’s failure to breach $20,500 has led to a correction. In the event that the support breaks, we can look toward $19,000 and below. However, more volatility is expected this month due to CPI data.”

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