As the price of Bitcoin As the Federal Reserve hits new highs, the bullish numbers aren't good for everyone – and could be a sign of a bubble that scares the Fed.
This is according to Marko Kolanovic, chief market strategist at JPMorgan Chase & Co., who reportedly said in a research note that the rise of the largest digital asset and related things could deter the Federal Reserve from easing monetary policy as soon as expected .
Kolanovic pointed to Bitcoin's jump above $60,000 and said he “could keep monetary policy at higher levels for longer, as an early rate cut risks driving asset prices further higher or a further rise in inflation.” to trigger.”
The multinational bank's strategist further argued that the rally in technology stocks and Bitcoin is a sign of “foam” in the market and could lead to a recovery in prices.
Bitcoin on Tuesday met briefly a new all-time high at Coinbase, America's largest cryptocurrency exchange.
It then fell quickly but is still trading at $67,376, after to CoinGecko. That's an increase of 57% since the beginning of the year. The last time Bitcoin reached $69,000 per coin was in November 2021.
In 2022, the Fed began aggressively raising interest rates to control 40 years of high inflation. Stocks and cryptocurrencies – both “risk assets” – were negatively impacted as investors retreated into the dollar.
But a booming appetite for technology has been good for the stock market, and cryptocurrencies have also risen sharply. The Fed is also expected to ease monetary policy and eventually cut interest rates, which could be good for the crypto market, analysts say told Decipher.
This, along with the highly successful Bitcoin exchange-traded funds (ETFs), has driven up the price of the digital asset market. And the quadrennial Bitcoin halving is still a month away – a milestone that usually precedes a new all-time high.
Edited by Ryan Ozawa.
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