JP Morgan has reportedly ended its banking relationship with Gemini exchange, according to an anonymous source cited in Coindesk. Gemini denies the report. This comes amid Operation Choke Point, a US government initiative to clamp down on cryptocurrency. The government may also sell as much as a billion dollars’ worth of crypto to further restrict liquidity. The market is pricing in an 80% chance of a 50 basis point rate hike at the next Federal Reserve meeting, causing the highest yields in 15 years and prompting some investors to flee to safer assets.
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The US Government and Crypto: What You Need to Know
The US government may soon be selling up to a billion dollars worth of crypto, which has raised many questions about the implications for the market. This is just one of many recent developments related to US government involvement in the world of cryptocurrency. Here’s what you need to know about this situation and other updates in the crypto world.
Operation Choke Point
Operation Choke Point is a government effort to choke out liquidity in the cryptocurrency market. There are concerns that the government wants more control over the industry, and this is one way they are trying to exert that control. Many banking partners have been dropped, and there have been crackdowns on exchanges like Kraken and Binance US. Recently, there have been reports that JP Morgan has cut ties with one exchange, Gemini, although Gemini is denying this. This effort to choke out liquidity from the market is making it harder for larger entities to invest in crypto.
Crypto Prices and the US Government
There is a lot of uncertainty right now with the crypto market due to the US government’s involvement. Bitcoin has fallen to around $22,000, and there’s a lot of trading action around the $21,500 to $21,900 range. There are also concerns about the FED raising rates, which is causing many people to invest in safer assets. The higher Treasury bill rates are making investing in riskier assets less attractive.
Selling of Crypto by the US Government
Another development in the world of cryptocurrency is the US government’s possible sale of Bitcoin it has confiscated from criminals, with a potential value of up to one billion dollars. This move could further impact the market’s liquidity and prices, although it’s uncertain how much of an impact it will have.
Diversification with Precious Metals
Given the uncertainty in the crypto market, BlackRock is warning that a recession is coming, and what worked in the past won’t work now. One way to diversify your portfolio during this time is to invest in precious metals like gold, which has a history of performing well during recessions. Monetary Gold is one option for investing in precious metals, and they offer free shipping, the ability to invest in precious metal IRAs, and more.
Conclusion
The US government’s efforts to control and regulate the cryptocurrency market are causing a lot of uncertainty, which is reflected in crypto prices. Operation Choke Point is making it harder for larger entities to invest in crypto, and the government’s potential sale of confiscated Bitcoin could impact the market’s liquidity. Given this situation, diversifying your portfolio with precious metals like gold may be a smart move. Stay informed about developments in the crypto world to make educated investment decisions.
