Bitcoin to $300,000 or $10,000? JP Morgan boss warns of something worse than recession
- Jamie Dimon warned JP Morgan clients that a recession might be on the horizon, with a 20-30% chance something worse may occur.
- The Federal Reserve’s goal to lower inflation from 8% to 4% by the end of 2022 could be derailed in the event of an economic slowdown.
- While Skybridge Capital recently predicted a Bitcoin price rally to $300,000, analysts evaluate the likelihood of a correction in BTC.
JP Morgan’s Jamie Dimon warned clients on a conference call of “something worse than recession” in the current economy. Dimon believes the likelihood of something worse than economic slowdown is 20-30%.
Also read: Bitcoin bear market woes: BTC price drop below $21,000 could spell doom
JP Morgan warns of something worse than a recession
Jamie Dimon, CEO of JP Morgan, told clients in a recent conference call that there are storm clouds ahead. This implies despite the current robust state of the US economy, something worse than a recession is in the cards. Dimon believes the likelihood of a mild recession is 20% to 30%; a severe recession has similar odds as the Federal Reserve increased interest rates.
Quantitative tightening and the macroeconomic outlook point towards “something worse than a recession” in the US economy. While recession could slow down the economy, the president of the World Bank is on the same page as Dimon and commented on high inflation.
David Malpass, President of the World Bank, said,
The world economy is again in danger. It is facing high inflation and slow growth at the same time. Even if a global recession is averted, the pain of stagflation could persist for several years- unless major supply increases are set in motion.
Skybridge Capital predicts Bitcoin price rally to $300,000
Skybridge Capital, an Investment Management company, recently predicted a Bitcoin price rally to $300,000. Anthony Scaramucci, founder and managing partner at global asset management firm Skybridge Capital, has a bullish outlook on Bitcoin and Ethereum. Scaramucci believes the Bitcoin price could rally to $300,000 within the next 12 to 24 months. The founder explained to investors that the world’s largest cryptocurrency is set to hit $300,000 in the long term; therefore, they should “relax” and “stay long-term.”
Scaramucci argues,
The crypto market, it’s our belief that most of the leverage is completely out of that system. So you are seeing a very strong recovery. It is a reminder to investors not to pull out, fight their own fear, stay patient and stay long-term.
Bitcoin price is headed to $300,000 or $10,000?
Neko, a crypto analyst and trader, noted that the Bitcoin price has plummeted to $21,700 in the ongoing bearish cycle. This level is key to the BTC price rally as it is the cumulative average breakeven of all Bitcoin holders, at $21,700.
Bitcoin market price hits cumulative average breakdown level
Bleeding Crypto, pseudonymous crypto analysts, argue that Bitcoin price suffers a decline every September, four years in a row. It remains to be seen where BTC is headed in September of 2022, but this suggests the current bearish run might not be over.
Bitcoin USD price chart, four years in a row
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
