OREANDA-NEWS. The era of "crazy speculation" in the digital asset market will soon come to an end. David Kelly, chief global strategist at JPMorgan investment bank, said this in an interview with Business Insider.

According to Kelly, the cryptocurrency market will fall further as the US Federal Reserve (Fed) will raise interest rates. As a result, the actions of the Fed will put an end to the era of "crazy speculation" in the digital asset market.

“I am waiting for a huge decline in the cryptocurrency market, because there is nothing there,” said a representative of the bank.

He explained that with the constant increase in interest rates, investors stop investing in "crazy ideas" and start directing funds to those projects that bring real economic returns.

Kelly considered that the cryptocurrency market has been actively developing in the last couple of years only due to the fact that the Fed introduced stimulus measures in connection with the pandemic. This triggered a decline in bond yields. As a result, investors began to invest in cryptocurrency.

On February 9, Deputy Finance Minister Alexei Moiseev said that cryptocurrency investments can be easily lost. According to him, no one will be responsible for the loss of money in this case.