The $362 billion worth banking giant JPMorgan Chase is in the latest cryptocurrency news for its recent prediction about the US recession, which according to the banking giant, could increase to 60% by 2020.
As a report from Bloomberg originally reported:
“The probability of a U.S. recession within one year is almost 28 percent, and rises to more than 60 percent over the next two years, researchers wrote in a note this week. Over the next three years, the odds are higher than 80 percent, according to the note,”
Before this, the Federal Reserve Bank of New York stated that there is a 14.5% chance of a recession occurring by the end of 2019 which is a stark difference from the one of JPMorgan’s 60% chance by 2020.
What’s interesting is the fact that cryptocurrencies are appealing in periods of market crashes and major recessions. One example is the hyperinflation in Venezuela which drove the demand for crypto in a rapid way.
While not portrayed by the prices of cryptocurrencies, the financial institutions including Goldman Sachs, Citigroup, and Fidelity all have established an infrastructure to target institutional investors that are planning to invest in the digital asset market.
In times when the digital payments industry is experiencing exponential growth, many investors are eyeing cryptocurrencies and Bitcoin as a potential option and a trend that can keep their funds safe from the predicted recession.