Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
JP Morgan CEO says he'll defend people's right to buy bitcoin

JP Morgan CEO says he'll defend people's right to buy bitcoin

The BlockThe Block2024/03/12 13:48
By:Brian McGleenon

JPMorgan Chase CEO Jamie Dimon said he would defend people’s right to purchase bitcoin.U.S. Bureau of Labor Statistics CPI data comes in hotter than expected.

JP Morgan CEO says he'll defend people's right to buy bitcoin image 0JPMorgan Chase CEO Jamie Dimon said that despite his reservations towards bitcoin, he would still defend people’s right to purchase the asset if they wish.

At this week's Australian Financial Review business summit in Sydney, Dimon discussed bitcoin's recent rally and offered his thoughts on the timing of this year's possible rate cut by the U.S. Federal Reserve .

"I defend your right to smoke a cigarette, and I’ll defend your right to buy a bitcoin," the JPMorgan Chase CEO told attendees. However, he added that he would personally never buy bitcoin . "I do think it’s a risk if you are a buyer, when governments look at all this stuff, why do they put up with it?" he said.

In light of bitcoin's price reaching a new all-time high above the $72,000 mark this week, Dimon suggested that the recent surge should prompt investors to pause. He then hinted that the market could be witnessing a bubble and that bullish buyers might overlook these signals. “I’m not so sure the world is that safe, or a risk-free place,” he added. 

Possibility of a Fed rate cut in 2024

Bitcoin BTC +0.15% 's surge, fueled by the introduction of spot ETFs, is occurring amidst market expectations of lower interest rates sometime this year.

According to the CME's FedWatch tool , interest rate traders are betting that the Fed will hold rates steady in March and May before making its first possible cut in June. However, at the Australian summit, Dimon said he favored the U.S. central bank waiting until later in the year before implementing a rate cut cycle.

"You can always cut it quickly and dramatically," Dimon said. Referring to the Federal Reserve's recent monetary policy decisions, he added, "their credibility is a little bit at stake here, I would even wait past June and let it all sort it out."

The JPMorgan chief said that any decision should be data-driven, warning that inflation may be stickier than expected and that rates could remain higher for longer.

Inflation still stubbornly high

The February U.S. Consumer Price Index (CPI) report suggests inflation is still stubbornly high, which could hinder the Fed's willingness to begin cutting rates.

The CPI increased faster than expected last month, with the year-over-year pace up to 3.2% versus estimates for 3.1% and January's 3.1%. The core rate, which strips out food and energy costs, also came in hotter than expected, with the U.S. Bureau of Labor Statistics data showing a core rate of 3.8% against expectations of 3.7%.

On a monthly basis, core CPI rose 0.4%, ahead of expectations of 0.3%, and showed no change from January's 0.4%. The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4% on a seasonally adjusted basis in February after rising 0.3% in January.

Bitcoin holds above $72,000

The bitcoin price has rallied to a record high to hold above the $72,000 mark. Over the past month the price of the digital currency has surged more than 40%.

However, in the past 24 hours, bitcoin's price increased by a muted 0.04% and was changing hands for $72,061 at 8:49 a.m. ET, according to The Block's Price Page .

The  GM 30 Index , representing a selection of the top 30 cryptocurrencies, has increased by 0.45% to 157.01 in the past 24 hours. Bitcoin dominance is at 49.9%, and Ethereum dominance is at 17%, according to CoinGecko data .

Bitcoin holds above the $72,000 mark. Image: The Block.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Pepe’s market cap briefly tops $10 billion on back of 77% price surge

The price of the frog-faced memecoin surged 77% in the past 24 hours to trade at $0.000024.Major exchanges, including Coinbase, Robinhood and Upbit, have recently listed Pepe trading pairs.

The Block2024/11/14 04:00