Bitcoin’s surge that has taken it close to its record highs could be a bubble, a Wall Street investment bank has warned, as global stock markets also surged to all-time peaks.

JPMorgan’s chief market strategist Marko Kolanovic said he is concerned that there is “froth building” in markets.

Bitcoin continued its ascent to a fresh two-year peak of $68,828 that put it within spitting distance of an all-time high. 

There are also signs of wider exuberance across markets, with the S&P 500, Nasdaq Composite all hitting record highs last week - and the Nikkei in Japan surpassing 40,000 for the first time on Monday.

Mr Kolanovic said: “Equities have moved up this year, even as bond yields rose and rate cut expectations unwound. 

“Investors may be assuming that the increase in yields is reflective of economic acceleration, but earnings projections for 2024 are coming down and the market appears too complacent on the cycle.”

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