Why Bitcoin Price Dropped Heavily Today? Traders Cautioned With Economic Storm On Horizon
In the last 24 hours, cryptocurrency markets have plummeted. The worldwide market capitalization has dropped to $1.24 trillion at press time and Bitcoin Price Dropped more than 5% and is currently priced at $29,823.
What a start to June, The U.S markets unexpectedly reversed from this morning and so did bitcoin which triggered this turmoil?
What Dimon has to say…
JP Morgan CEO Jamie Dimon recently spoke out on the present health of the economy, which rattled US markets and Bitcoin. What exactly did he say, and how does this impact Bitcoin?
Jamie Dimon’s statements on the economy’s future and their implications for bitcoin were examined by a CryptosRUs analyst in his recent video. Jamie began with the markets, which were already in deep red.
The Dow, which was up 200 points this morning, has now flipped to roughly negative 400 points, and the NASDAQ, which was up 2% this morning, has already turned negative 1%.
Now, bitcoin is still holding up rather well; regrettably, it has dipped below the 31-6 barrier, but it is still hovering around 38 800, which is around the same level as a few days ago.
So, why did everything start to fall apart as Jamie Dimon just spoke in front of a group of investors, and when he talks, people tend to pay attention? JP Morgan currently deals with cryptocurrency, and the company is expanding rapidly in the space, despite Jamie’s claims that he is still not a fan of bitcoin.
However, he did mention a few interesting things today, inciting panic on Satoshi Street.
Dimon said that JPMorgan is preparing for that turbulence by being conservative with its balance sheet.
“You’d better brace yourself,” Jamie Dimon warned the analysts and investors in the room. “We’re bracing ourselves at JPMorgan, and our balance sheet will be quite conservative.”
Dimon is concerned about two primary factors:
The First thing that Jamie is concerned about, the Federal Reserve has indicated that it will end its emergency bond-buying programs and reduce its balance sheet. Quantitative tightening, or QT, is set to begin this month, with bond holdings being lowered by $95 billion per month.
He said that no one has ever seen quantitative tightening like this, which sounds pretty scary when you’re talking about something that could be written about in history books for the next 50 years. To continue, central banks have no choice because there is too much liquidity in the system, so they must remove some of it to stop market speculation.
The second thing that Jamie is concerned about is the war in Ukraine, which is bringing a lot of unknowns into the picture, such as oil prices, which have risen dramatically to over a hundred dollars per barrel and could rise even higher to 150 or 175 dollars per barrel, which is one of Jamie’s concerns.
“When wars go awry, they have unforeseen effects,” Dimon explained. “We are not taking the necessary steps to shield Europe against what may happen to oil in the near future.”
Michael Saylor’s optimism to the fearful investors
Another billionaire, Michael Saylor, was reported by the analyst as saying that bitcoin is the way to go and that it is dominating gold SMP NASDAQ, as well as jp morgan. Such statements from the great bitcoin bull give optimism to the fearful investors in a market full of turbulence.
People need a safe place to stand independent from the involvement of a government, an agency, or a company, which bitcoin symbolizes. A fair, open, and equitable network that makes a simple guarantee to anyone who wants to join: whatever you possess is yours, and no one will take it away from you. That is essentially what bitcoin is!
What you need to know
The Federal Reserve is under pressure to reduce an inflation rate that is more than three times its target of 2%, resulting in a spike in the cost of living for Americans.