Stifel Strategist: Bitcoin Peaking is Not a Good Sign for U.S. Stocks

Stifel Nicolaus Co. stated that investors lost interest in cryptocurrencies after Bitcoin hit a new high last month, which more broadly indicates the fading enthusiasm for risk assets and the U.S. stock market. The team led by the company's chief equity strategist Barry Bannister said that Bitcoin peaking suggests a weakening stock market. Bannister stated that after the Federal Reserve policy begins to shift in the fourth quarter of 2023, Bitcoin and Nasdaq 100 Index are synonyms for "speculative fever". The Fed's dovish stance sparked market frenzy, and Bitcoin "may have peaked."