The president of JP Morgan Chase, the president of America’s largest US bank, warned of the risks of immersion in the country’s economy.
Bankers have expressed concern about factors such as fiscal deficits, geopolitical tensions and inflationary pressures.
In an interview with the China Global Summit framework, Dimon said the US Federal Reserve is facing restrictions to control inflation and motivates an increase in interest rates.
“Because of the rise in inflation, prices have risen and we are completely out of control,” he said. He explained that the global market will negotiate $1 billion every day, and will escape full control of the Fed.
He further emphasized that foreigners have $35 billion in US financial assets. This adds complexity to monetary policy decisions. “They have to respond to reality, they have to rely on data and wait to act,” he added, highlighting economic uncertainty.
It is true that the US economy is showing resilience, with indicators suggesting soft landing as virtually controlled inflation. Dimon warned that this does not guarantee future stability.
In fact, he identified risks such as high financial disability, the effects of quantitative adjustments, and increased geopolitical tensions. These factors, combined with sustained inflationary pressures, It could lead to a standflation scenarioeconomic growth will stagnate, but inflation will remain high.
Dimon emphasized that the Fed must act with caution; Evaluate the data before making a decision. “I don’t think we’re in an ideal situation,” the financial institution’s president said.
Bitcoin is an economic relief
In this context, Bitcoin (BTC) manifests as an asset that could be emphasized. Unlike traditional assets that usually suffer from periods of economic uncertainty, Bitcoin shows anti-cyclical behavior.
There are experiences that arise during the early crisis, but its history shows a rapid recovery. For example, after the pandemic collapsed in 2020, Bitcoin quickly recovered. New historic maximums will be reached in 2021.
This resilience is attributed to its decentralized nature and limited offers, making it a potential shelter against inflation and devaluation of Fear currency.
Historically critical of cryptocurrency, JP Morgan has undergone a considerable shift. Recently, the entity announced that BTC will provide its clients. This reflects the growing acceptance of digital assets institutions. This change occurs at the time of the investor They are looking for alternatives to economic uncertainty.
JP Morgan’s move could be interpreted as an implicit recognition of the possibility of Bitcoin Acts as coverage in Stagflation scenariostraditional assets face pressure.
The scenario explained by Dimon enhances the appeal of Bitcoin. In a stunflation environment where inflation continues and growth slows, investors are They were able to rely on uncorrelated assets with traditional markets.
Bitcoin with a fixed supply of 21 million coins, Provides potential protection against loss of value of fíat currency; As this macromicrograph shows, as the index has not stopped depreciating Bitcoin over time,
Furthermore, decentralization of Bitcoin isolating the separation of financial policy decisions between governments and authorities, making it attractive in situations where the Fed faces restrictions.
Bitcoin volatility is important It’s not preventing institutional investors from considering it more and more. JP Morgan’s decision to allow Bitcoin investment suggests that even traditional institutions see possibilities with this asset.
Meanwhile, risks shown by Dimon, such as fiscal deficits and geopolitical tensions; They can exacerbate inflationaffects traditional assets. In this scenario, Bitcoin can benefit from his perception as a digital gold already widely accepted by various entities and organizations, as reported by encryption.
Dimon’s warning about stagflation comes at a critical moment. Global markets face uncertainty due to geopolitical conflicts, supply chain disruptions and restrictive monetary policy. However, a combination of macroeconomic factors and market evolution He suggests that Bitcoin could be integrated as a related asset in the coming years.