In an interview at the Financial Markets Quality (FMQ) Conference on Tuesday, Jamie Dimon, CEO of JPMorgan Chase , said that the bank he heads, the largest in the United States, is probably one of the biggest users of blockchain. “We’re probably one of the biggest users of blockchain, a real user,” Dimon said when asked about innovative technologies like blockchain and artificial intelligence. “It’s just a database.” However, Dimon, who has long been skeptical of crypto and has compared Bitcoin to “a decorative rock,” maintains that crypto is “worthless.”
In fact, the 68-year-old CEO once again used his favorite phrase: “Cryptocurrency… I call it a rock.” However, Dimon has developed an unwelcome respect for the technology behind cryptocurrencies, noting that blockchain is “a great way to Chia data” and create trust between banks and their customers. In 2020, JPMorgan Chia from Ethereum to create its own permissioned network called Onyx. The system is designed for aggregated payments, peer-to-peer lending and borrowing, and cross-border payments.
JPMorgan Chase is perhaps one of the biggest users of Blockchain | Source: CNBC
The Onyx network has processed more than $700 billion in transactions and counts companies like Goldman Sachs, DBS Bank, and BNP Paribas among its users. Dimon has long been critical of cryptocurrencies but has been a supporter of blockchain. In Davos, Switzerland, in 2021, he called Bitcoin “an overhyped fraud,” but touted blockchain as “an efficient way” to move money. (Bitcoin has risen more than 40% since then, according to The Block.)
“We’ve been talking about blockchain for 12 years, but not much has happened, it’s not like AI,” Dimon said on Tuesday. Dimon, who once said at a congressional hearing that he would ban cryptocurrencies “if I were the government,” is now reportedly in consideration to become Treasury Secretary if Donald Trump is re-elected, a position he has seemingly softened. While Dimon said Chase is unlikely to lend against cryptocurrencies, he was fairly certain that the bank’s customers could access some crypto-related services. “If you want to do that… this is a free country. I believe in freedom, do what you want,” Dimon said.
Bitcoin BingX Chart
Bitcoin BingX 1D Chart 09/18/2024 | Source: TradingView & BingX
The crypto market has rallied strongly as the S&P 500 hit an All-Time-High of 5,670, buoyed by the possibility of a 50 basis point rate cut on September 18. The total crypto market Capital has increased by about 4% in the past 24 hours, reaching $2.1 trillion. Today's rally reflects strength in U.S. stocks. The S&P 500 hit an All-Time-High of 5,670.81 and is up about 20% in 2024.
The performance underscores the growth in valuations of the largest companies listed on US stock exchanges. Meanwhile, investors have turned their attention to the US Federal Reserve's decision after the two-day Federal Open Market Committee (FOMC) meeting, scheduled for September 17-18.
The US central bank is widely expected to begin a series of rate cuts on September 18, after raising borrowing costs to their highest level in nearly two decades. “This will be the most uncertain Fed decision in over a decade,” Capital markets commentator The Kobeissi Letter said in a post on X on September 17. According to data from the CME Group’s FedWatch tool, the probability of a 0.5% rate cut at the September 18 FOMC meeting was around 65% at the time of writing, while expectations for a 0.25% cut were 35%.
The market recovery further reflects the growing optimism among traders and investors in Bitcoin Spot ETFs. Bitcoin ETFs in the United States saw net inflows of $403 million in the week ending September 13. The trend continued into the new week, with ETFs recording inflows of $12.8 million on September 16, bringing the total ETF inventory to $17.3 billion, according to data from Farside Investors.
BTC 's current support level is at $59,500 and resistance is at $62,500.
