- At present, the connection and the relationship between the traditional and digital asset markets are at its top.
- The reports and data are issued by several authorities frequently. But, any statement or data issued by the agencies is responsible for the inclination or decline of the markets.
- Although, JPMorgan, an investment banking company, has witnessed a crucial fall in its net profit.
According to the reports, the Net profit of JPMorgan for the Q3 of this year has shrunk by a 17%, which made it stand at $9.74 billion. The reports also highlighted that the platform is keeping $808 Million apart for the resorvatory purpose. This can be referred to as a crucial fall in the profit as the company was capable of keeping $2.1 billion apart in the Q3 of the last year.
The Chief Executive Officer of JPMorgan gave a statement asserting that “In the United States, client carries on to spend with solid balance sheets, job openings are enough, and entrepreneurs remain fit.”
“Although, there are important headwinds quickly in front of us, determinely high inflation resulting to higher global interest rates, the undetermined effects of quantitative tightening the war in Ukraine, which is growing all geopolitical risks, and the brittle state of oil supply and prices.”
Specialists advise that there is a hike in the interest income that got struck by the high loan loss provisions. Although, the stakes of JPMorgan plunged by almost 4% after the report was published. Investors are impatient, searching for the US authority’s aggressive interest rate to cool down inflation.
The report continued by revealing that revenue from investment banking has also slipped evidently, It has jumped by more than 43% to be at $1.7 billion.
Will the crypto market be affected?
Although increasing rates are referred to as positive for the banks as it permits them to charge more interest than usual from the borrowers, prior to this, JPMorgan allegedly said that cryptocurrencies’ deficits value.
The growing link between the crypto market and the traditional market is a warning for investors. Stock indexes such as Nasdaq and S&P 500 witnessed a fall just after the publicization of the September US CPI data. The crypto market defined the major markets by listing a fall of about 3%.
Although, the Friday morning crypto market witnessed a wide recovery following the traditional markets. The crypto market capitalization over the world hiked by over 3% to stand at $930 billion.
Source: https://www.thecoinrepublic.com/2022/10/15/jpmorgan-profit-down-by-17-what-will-be-effect-on-crypto/