The JPMorgan President believes crypto has become a small asset class that is kind of irrelevant. He doesn’t think that the market has seen the bottom yet.
“The reality is, the current form of crypto has become a small asset class that is kind of irrelevant in the scheme of things, but the technology, the concepts, something is probably going to happen there; just not in its current form,” Daniel Pinto, co-president and chief operating officer of JPMorgan Chase & Co told CNBC in an interview.
Is crypto irrelevant?
According to Daniel Pinto, the current form of crypto has become a small asset class that is kind of irrelevant. However, just Bitcoin itself, if we keep the rest of other cryptos aside, has a larger market cap than JPMorgan. This ideally doesn’t justify that the current form of crypto is a small asset class.
The executives at JPMorgan, most notably the CEO Jamie Dimon, are known to bash crypto. However, their clients want exposure to crypto, so they have started offering crypto funds to wealth management clients. The former employee has called them hypocrites.
JPMorgan President: The market has not bottomed
The President of America’s largest bank believes that it is essential to put inflation back in the box. The latest inflation rate is 10.1%, the highest in the past 40 years. The FED is aggressively raising the interest rate to control inflation.
The JPMorgan President believes that the expectations for corporate earnings are still probably high. It is not showing a sign of a slowdown, generally, it slows down near the market bottoms.
Further, there are dangers of geopolitical scenarios getting worse. The war between Ukraine and Russia can take an ugly turn. Also, there are tensions between China and Taiwan. Considering all these factors, Daniel Pinto thinks that the market hasn’t bottomed yet
Technicals are bullish
The technicals differ from the point of view of Wall Street Veterans. The Dow Jones Industrial Average Index shows a double-bottom breakout.
The price broke out from the neckline of the double bottom at 30330, and then successfully retested the neckline on Friday.
The DJI is making higher highs and higher lows, which indicates the beginning of a short-term uptrend. Every bull run starts with a short-term upward rally. Will this rally sustain, or will the price breakdown?