JPMorgan: The Fed may be concerned by Bitcoin’s surge, potential delays in rate cuts.

The recent surge in Bitcoin’s price to new highs has raised concerns among some experts, including JPMorgan Chase’s Chief Market Strategist, Marko Kolanovic. Kolanovic has reportedly voiced concerns in a research note that the rally in Bitcoin and other digital assets might impede the Federal Reserve’s capacity to ease monetary policy.

Kolanovic suggests that Bitcoin’s leap above $60,000 could “prolong higher monetary policy.” He believes that early interest rate cuts might further inflate asset prices or trigger inflation.

Interestingly, Bitcoin’s recent performance contrasts with the broader market’s reaction to the Fed’s decision to keep current interest rates. While stocks and other assets experienced a dip following the news, Bitcoin maintained relative stability. This stability follows a robust start to the year, with Bitcoin currently up nearly 9% and momentarily reaching a new all-time high on major exchanges.

A combination of factors is driving Bitcoin’s price increase, including the anticipated easing of monetary policy, the success of Bitcoin ETFs, and the forthcoming Bitcoin halving – an event historically associated with price increases. However, the asset’s volatility and potential to overheat are sources of concern, possibly delaying the policy changes that some investors are anticipating.