Could the recent surge in Bitcoin scare the Fed?

as the price Bitcoin Hitting new highs, the bullish numbers aren't good for everyone — and could be a sign of a bubble that threatens the Fed.

That could keep the Federal Reserve from loosening monetary policy as quickly as expected, according to Marko Kolanovic, chief market strategist at JPMorgan Chase & Co., in a research note.

“Monetary policy may be on hold for a longer period of time, as premature devaluations could lead to asset price increases or other inflationary pressures,” Kolanovich said, referring to Bitcoin's jump above $60,000.

A multinational bank strategist argues that the rally in tech stocks and bitcoin is a sign of a “bubble” in the market and could cause inflation.

A market bubble was also on the mind of Patrick Felder, founder and CIO of Prismatic Capital.

“I'm sure the fed authorities are looking at Bitcoin's price action, but it's just one of the hundreds of things they're looking at,” Felder said. Bitcoin price alone has no bearing on federal policy, but it is an interesting data point to measure market liquidity and bubbles.

“I think they're still going to cut it this year, since the election year, but they're probably going to keep it higher than expected in 2025,” he continued.

Bitcoin Tuesday Briefly tap New all-time high on Coinbase, America's largest cryptocurrency exchange.

Well then He fell quickly But it is still trading at $67,376. basis to CoinGecko. That's a 57% increase since the beginning of the year. The last time Bitcoin reached $69,000 per coin was in November 2021.

In the year In 2022, the Fed begins to raise rates significantly to try and control the 40-year high rate of inflation. Stocks and cryptos—both “risk assets”—were negatively impacted as investors retreated to the dollar.

But increased appetite for technology has buoyed stock markets, and crypto has soared. The Fed is also expected to ease monetary policy and eventually cut interest rates, which bodes well for the crypto market, analysts say. They spoke Decrypt.

This, along with the huge success of Bitcoin Exchange Traded Funds (ETFs), has boosted the value of the digital asset market. And every four years, Bitcoin's halving is one month away—a milestone that preceded a new all-time high.

Edited by Ryan Ozawa.