Benzinga - JPMorgan Chase & Co (NYSE: JPM) CEO Jamie Dimon on Tuesday affirmed his support for individual rights to invest in Bitcoin (CRYPTO: BTC), even as he shared his insights on the cryptocurrency's impressive rally and speculated on the timing of a potential rate cut by the U.S. Federal Reserve this year.
What Happened: Speaking at the Australian Financial Review business summit in Sydney, Dimon drew an analogy between buying Bitcoin and smoking cigarettes to illustrate his point on personal freedom.
"I defend your right to smoke a cigarette, and I’ll defend your right to buy a Bitcoin," he told the audience, clarifying, however, that he personally would steer clear of investing in Bitcoin, according to The Block.
He raised concerns about the regulatory future of cryptocurrencies, questioning, "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?"
With Bitcoin's value soaring to a new peak above $72,000 this week, Dimon suggested this bullish trend warrants caution among investors, implying that the market might be in a bubble.
"I’m not so sure the world is that safe, or a risk-free place,” he said, hinting at the potential oversight of warning signs by optimistic investors.
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Exploring the Federal Reserve's Rate Cut Prospects in 2024: The anticipation of lower interest rates within the year, partly driven by the launch of spot ETFs, has influenced Bitcoin's recent price surge.
Despite forecasts of steady rates in the upcoming March and May meetings, Dimon advocated for a more cautious approach, suggesting a delay in the rate cut cycle to later in the year.
"You can always cut it quickly and dramatically," he advised, emphasizing the importance of the Federal Reserve's credibility in their monetary policy decisions. "Their credibility is a little bit at stake here, I would even wait past June and let it all sort it out."
Dimon underscored the necessity of a data-driven approach to any future rate adjustments, cautioning that inflation might persist longer than anticipated, potentially leading to a prolonged period of higher rates.
Amid these discussions, Bitcoin has maintained its record-breaking momentum, with a more than 40% increase in price over the past month.
BTC Price Action: Bitcoin is currently trading around $71,885, down 1% over the past 24 hours, according to Benzinga Pro.
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