Bitcoin Price: Will Jamie Dimon’s Recession Warnings Come True?

• Jamie Dimon, CEO of JPMorgan Chase and Co., warns that banking weakness could lead to a recession in 2023.
• The IMF also warned this week of “shadow banks” or non-bank financial companies that could endanger financial stability.
• If Dimon is right, the next recession will last for years and have repercussions for many years after it ends.

Economic Turmoil in US & Europe

Banks are in turmoil in both the U.S. and Europe as we move into Q2. Economic, financial, and business analysts have been on the lookout for an imminent recession since late 2022. The only question in a field of certainty that a mild recession is looming is where?

Jamie Dimon’s Warning

Jamie Dimon, longtime CEO of JPMorgan Chase and Co, warned in a recent letter it will be nothing like 2008, but the next recession will last for years: „As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come. But importantly, recent events are nothing like what occurred during the 2008 global financial crisis (which barely affected regional banks).“

IMF’s Shadow Banks Warning

The IMF warned this week of „shadow banks,“ or non-bank financial companies that endanger financial stability as well.

Recession Risk

If Dimon is right and the economy is more apt to fall into recession due to banking weakness then Bitcoin price could go either way depending on investor sentiment during this period of uncertainty.

Conclusion

It remains unclear whether or not banking weakness will lead to a recession in 2023 but investors should continue to monitor economic developments carefully as we move into Q3 & Q4 of 2021.