News

JP Morgan Expects Strong Crypto Rally, Here’s When It Will Begin

The crypto market has struggles due to unfavorable macroeconomic conditions. However, JP Morgan expect a strong crypto rally.
Published by
JP Morgan Expects Strong Crypto Rally, Here’s When It Will Begin

The crypto market has been sluggish due to unfavorable macroeconomic conditions. The consumer expenditure data highlighted that the Fed’s hawkish stance was insufficient to curb inflation significantly. As a result, the central bank is expected to move forward with an extremely hawkish stance. However, financial services leader J.P. Morgan expects a strong rally in the risk assets markets such as crypto.

Bitcoin has fallen over 12% in the last 7 days and is well below the $20K mark. Ethereum continued its slide after the merge and has fallen close to 20% in the last 7 days. The entire altcoin market faced a major beat down. 

Advertisement

JP Morgan Expects Strong Crypto Rally

JP Morgan believes that the bottom for risk assets and the stock market is very near. Global Head at JP Morgan, Marko Kolanovic, reveals that he is bullish on the market. Kolanovic points to the better-than-expected performance of the corporate earnings to support his sentiment. The low investor positioning will also help the market in the long term.

Marko does believe that the Fed will continue with its hawkish stance. According to him, the Fed will decide on a 75 bps interest rate hike at tomorrow’s FOMC meeting. Moreover, he believes that a 100 bps hike cannot be counted out in the future. However, he believes that “well-anchored long-term inflation expectations” will prevent the market from sliding further.

CNBC’s popular analyst Jim Cramer reveals that inflation is hurting equities and corporate earnings. However, due to the low positioning by most investors, any good news can spur a rally.

Kolanovic believes that the Fed will start cutting interest rates early in 2023 which will backstop the equity market. He reveals that a strong rally can be expected thereafter.

Advertisement

What Will Be The Fed’s Decision?

The Federal Reserve will make its decision on the next interest rate hike tomorrow at the FOMC meeting. While the CME Fed Watch tool is expecting a 75 bps hike, crypto analysts like Michael van de Poppe believe that a consensus seems to be forming around a 100 bps hike.

Advertisement

Share
Nidhish Shanker

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society's biggest issues. He is a firm believer of decentralization and wants to work on the mainstream adoption of Blockchain.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?

Bitcoin traders are turning their attention to this week’s Federal Open Market Committee (FOMC) meeting.…

October 26, 2025
  • News

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House crypto czar David Sacks has shown his support for Donald Trump's nomination of…

October 25, 2025
  • News

Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role

Crypto firm Ripple has revealed that it is exploring new ways to use XRP within…

October 25, 2025
  • News

Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms

Kyrgyzstan has made a significant move in the adoption of digital finance. It has now…

October 25, 2025
  • News

Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing

Ripple-backed Evernorth's XRP treasury has grown to $1 billion just days after the company announced…

October 25, 2025
  • News

Trump Tariff Tensions Ease as U.S. and China Hold Positive Trade Talks Ahead of Oct 30 Summit

In fresh developments, the United States and China’s trade teams have commenced negotiations on the…

October 25, 2025