Summary
Bitcoin hitting new highs could delay the Federal Reserve from loosening monetary policy, according to JPMorgan Chase strategist. The surge in Bitcoin and tech stocks may indicate a market bubble. The Fed’s actions and upcoming Bitcoin halving could impact prices.
Key Points
1. JPMorgan Chase & Co.’s chief market strategist Marko Kolanovic warned that the surge in Bitcoin’s price may prevent the Federal Reserve from loosening monetary policy as expected.
2. Kolanovic pointed out that Bitcoin’s jump above $60,000 could keep monetary policy tighter for longer, potentially inflating asset prices or causing further inflation.
3. The rally in tech stocks and Bitcoin is seen as a sign of market “froth” by Kolanovic, which could lead to a rebound in prices and impact the Federal Reserve’s decision on interest rates.