Analysis: If turmoil in the U.S. bond market forces the Federal Reserve to intervene, it may prompt investors to turn to Bitcoin
JPMorgan Chase CEO Jamie Dimon is preparing to deal with the turmoil in the nearly $30 trillion U.S. Treasury market, while the Federal Reserve only takes action when they start to panic a bit. The U.S. Treasury market plays a central role in global finance, setting the tone for all market factors from mortgage rates to corporate bond yields. Jamie Dimon warns that if the financial system falls into paralysis again, its consequences could ripple through the entire economy. Turbulence in the U.S. Treasury market leading to Federal Reserve intervention may prompt some investors to turn to Bitcoin (BTC), which is often seen as a hedge against currency instability; this seemed to be the case in 2020 when aggressive stimulus measures by the Fed led Bitcoin prices soaring.
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.
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