Bitcoin price falls just below $24k and JP Morgan warns that “something worse than a recession” could be ahead

Bitcoin price is currently around $23.8ki at the time of writing. The largest cryptocurrency by market capitalization recently made two attempts to overcome the $25,000 resistance, but failed both times. Now it is trading slightly below the key support level of $24k. Altcoins also had to give something up. More on that later.

In other news: Major US investment bank JP Morgan has painted a gloomy picture for the future despite the recent upturn in the markets. Jamie Dimon, the company’s chief executive, has warned that something worse than a recession could await the public. Since a recession is bad enough on its own, what could this even more dangerous situation be? More on that later.

Korean regulators are investigating a massive $6 billion Kimchi bounty that came from crypto exchanges. In fact, the authorities are looking at the huge amount of foreign money transfers that came from these crypto platforms. They could be part of a larger money laundering operation in the country.

The latest court records show that Celsius is not only short of billions, but will probably be short of money as early as October. The lender has negative cash flow, but not many people knew it was that negative. The platform is expected to run into further problems and be investigated by the authorities. Other crypto lenders also have major issues with Voyager allowing some withdrawals but also on the brink of bankruptcy, while Hodlnaut is looking to legal management to avoid liquidation.

The largest crypto exchange Coinbase temporarily stops withdrawals and deposits during the Ethereum merger event. This makes sense and most other exchanges will likely follow suit. Coinbase also warned users about scammers claiming to help plot migration.

The United Nations Conference on Trade and Development (UNCTAD) has asked developing countries to limit the use of cryptocurrency. The organization has stated that cryptos are volatile assets and can cause losses to a large number of people. They also argued that this could endanger the monetary sovereignty of many countries.

Bitcoin falls just below $24k

Bitcoin has fallen back below $24k after several days above this key level. The cryptocurrency is trying to regain its footing after two failed moves above.

The last 36 hours started with the BTC rate around $24.1k. It traded sideways for most of the day, falling just below $24k, but also rebounded immediately. But yesterday, at 3:30 p.m., the price fell and did not recover. Although the drop itself was quite low, maxing out around $23.8k, it shows that $24k is not a clear support going forward and the bulls are starting to feel the pressure.

The Bulls need to regroup and do it quickly. If the bears can suddenly make a further price drop, the precious recoveries of recent weeks could be lost within hours. The bulls also need to make a move at the $25k resistance and overcome it or the negative forces will feel confident again.

Bitcoin’s total market capitalization was around $457 billion and its share of the crypto market was 41%.

Bitcoin price chart

Losing Altcoins Books

Other cryptocurrencies generally posted some losses as the market’s immediate bullish outlook came under pressure. Losers were Dogecoin (DOGE, -0.8%), Shiba Inu (SHIB, -3.5%), Polygon (MATIC, -1%) and Avalanche (AVAX, -1.2%).

Avalanche price chart

In other news….

JP Morgan CEO warns of something worse than a recession

Jamie Dimon, CEO of JP Morgan Chase, has warned that something worse than a recession could hit the world in the short term. He pointed out that the interest rates in Qatar, Ukraine, China and elsewhere will have a huge negative effect on the coming economic problems.

Dimon said the chances of a soft landing from this vast swamp diminish over time. He said:

“What’s out there? There are storm clouds. Prices, QT, oil, Ukraine, war, China….., If I had to put odds: soft landing 10%. Harder landing, mild recession, 20%, 30%… .., Harder recession, 20%, 30%. And maybe something worse at 20% to 30%” Something worse could be some form of economic depression with far-reaching consequences.

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