We can count JPMorgan as not in the camp of Jerome Powell.  At least this is the viewpoint of one analyst there.

The [bank](https://leofinance.io/@leoglossary/leoglossary-bank) is now warning people to steer clear of Bitcoin since it believes Chairman Powell is overestimating the strength if the US economy.  This is something I chimed in about for a number of months.

![image.png](https://images.hive.blog/DQmcKUVaDrepWDDG6nMxjwbNtVFcwWD333PdCKmawzSGXbu/image.png)
<center>[Source](https://www.simplilearn.com/ice9/free_resources_article_thumb/cryptocurrency_explained.jpg)</center>

David Kelly is chief global strategist as JPM.  Here is what he said about Powell and the Fed's outlook:

>“The Federal Reserve is overestimating the strength of the US economy as it feels guilty about the fact that inflation went up under their watch.”

Not sure about the feeling guilt part but I agree completely with the first section.  [The Fed](https://leofinance.io/@leoglossary/leoglossary-federal-reserve-bank-the-fed) is overestimating the economy and how strong it is.  There are signs all over the place of where it could start to crack in a big way.  Of course, as the US economy goes, so often does the rest of the world.

Kelly is not the only one calling for a major drop in the [economy](https://leofinance.io/@leoglossary/leoglossary-economy).  Many are making the same forecast.  Unfortunately, this is bad news for cryptocurrency since it has shown it is not capable of withstanding any economic headwinds.

The idea of crypto being a hedge against the real economy and price increases proved false.  Instead, it is trades more like tech [stocks](https://leofinance.io/@leoglossary/leoglossary-stocks), something else Kelly alludes to.

>“Make sure you overweight US and international value, as well as stocks with relatively low price-to-earnings ratio.”

It is hard to argue the risk off sentiment.  When that takes place, stocks like Apple and Google lose their shine.  So does Bitcoin.

We are stuck in the realm where cryptocurrency trades like high PE stocks.  That will be off the table for a while if Kelly is right.

This could be a bit bumpy for a while.  Kelly is looking at a full year of economic turmoil.  For this reason, he believes it is best to get out of cryptocurrency.

>The JPMorgan strategist also predicts the economy will feel “more normal” by the end of 2023. He suggests staying away from Bitcoin and large-cap tech stocks. He also advises selling crypto.

<center>[Source](https://dailyhodl.com/2022/08/31/banking-titan-jpmorgan-recommends-to-steer-clear-of-bitcoin-btc-amid-high-risk-of-a-recession-report/)</center>

## Do You Agree With This?

Is this something that you believe it true?

Based upon the way the markets reacted over the last 8 months, I have a tough time arguing against the overall viewpoint.  [Cryptocurrency](https://leofinance.io/@leoglossary/cryptocurrency) could be in for another leg (or two) down.  A recession that is much deeper is not off the table in my opinion.  For this reason, I find it hard to see how cryptocurrency stands up.

Of course, the desire to sell should be based upon your own plan.  If one is long-term focused, there could be reason for not selling.  In fact, since markets are near impossible to time, it could be the case where we see tremendous opportunities to load up on some of our favorites coins and [tokens](https://leofinance.io/@leoglossary/leoglossary-token).  The only question might be when?

It is hard to judge [bear markets](https://leofinance.io/@leoglossary/leoglossary-bear-market).  Unfortunately, the crypto market preceded the economy by a full quarter.  This is something that could happen on the other end.  We will likely see crypto (along with equities) rebound before the overall economy does.

Until then we are left in the alligator pit trying to navigate our way through. 

Be prepared for some rough going.  It is not a pretty picture in the near-to-medium term from what I can see.

What are your thoughts?  Let us know in the comment section below.

Article by @taskmaster4450le

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@lbi-token/jpmorgan-avoid-bitcoin-with-recession-looming)