JP Morgan's CEO warns of a bond crisis like the Covid crash originally appeared on TheStreet .
Crypto markets are taking a dig at Jamie Dimon, CEO of JPMorgan Chase, after he raised the alarm on FOX Business Network about the real risk that the U.S. bond market may unravel due to increasing federal debt, which lowers investors' confidence in U.S. assets. Although Dimon did not provide a date, he indicated, "It will happen again… I just don't know exactly when."
Dimon focused on more than $35 trillion in U.S. securities held by foreign investors and an additional $30 trillion in private U.S. assets as significant pressure points.
If global investors begin to "vote with their feet," warned Dimon, the dollar could lose its prized position, and credit spreads could widen significantly, similar to the chaos seen in 2020 with the COVID crash, but this time, it may not be that quickly.
Bitcoin critics echo institutional appeal
The ramifications extend far beyond Wall Street.
@stackinsats93, a pseudonymous crypto analyst said, "Jamie's not saying 'buy Bitcoin,' but he's basically screaming it between the lines. If the bond market 'unravels' like he says, there's nowhere else to hide but BTC."
For the crypto markets, this kind of alert confirms a long-held thesis: that Bitcoin and decentralized assets can act as a hedge when trust in fiat systems is eroding. During periods of sovereign debt turmoil, crypto supporters often claim that blockchain-based options are safer stores of value.
In 2021, as another debt ceiling standoff loomed, Bitcoin experienced a volatile price ride, reaching around $43,000. While it wasn't behaving as a true haven , the heightened focus brought it into the mainstream of macroeconomics.
Yet the yield on the 30-year rose back above the 5% mark in May , and the benchmark 10-year bond reached 4.5%, as part of a global selloff in bond markets. Bitcoin hit an all-time high in a similar timeframe. On May 22, Bitcoin came close to $112,000.
"Based on M2 alone, Bitcoin should reach $140,000 this year. After the US Treasury downgrades, investors are shifting to BTC for safety," said Steven McClurg, CEO of Canary Capital, to the New York Post . Arthur Hayes, a prominent voice in the industry, also agreed to Bitcoin's status as a hedge against inflation in April.
Recently, Dimon also said , "U.S. should stockpile bullets and tanks, not Bitcoin". Longtime Bitcoin skeptic and gold advocate Peter Schiff used Jamie Dimon's warning to minimize the U.S. dollar.
Schiff's view depended on a faster timeline, implying that without changes in fiscal policy, the reserve currency status of the dollar might disintegrate in four years. Though Schiff dismisses Bitcoin as a viable asset, his alarmist tone often reflects institutional interest in the cryptocurrency.
JP Morgan's CEO warns of a bond crisis like the Covid crash first appeared on TheStreet on Jun 2, 2025
This story was originally reported by TheStreet on Jun 2, 2025, where it first appeared.
