Investing.com — JPMorgan (NYSE:) is still wary of crypto markets, even though managed to bounce back a bit after having its worst day since Sam Bankman-Fried’s FTX empire crashed in November 2022.
The flagship cryptocurrency tumbled over 15% on Monday before rebounding around 5% the next day. The trigger was not crypto-specific but rather contagion from the correction in traditional risk assets such as equities.
Last week’s weak US payroll report, along with rising jobless claims, has amplified fears of a US recession. At the same time, the Bank of Japan’s rate hike sparked concerns about a broader unwinding of the yen carry trade. This dual impact triggered a correction in risk assets, particularly equities and cryptos, and a rally in safe assets such as government bonds, the yen, and the Swiss franc.
That said, JPMorgan analysts suggest that a certain crypto trading firm played a role in the sell-off by liquidating…
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