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Bitcoin’s surge signals potential market ‘overshoot,’ BofA strategist warns

Bank of America's strategist, Michael Hartnett, has warned of a potential market overshoot in early 2025, as U.S. stocks and cryptocurrencies show signs of overheating. The S&P 500's price-to-book ratio has surged to 5.3 times, nearing levels seen during the dot-com bubble in 2000. Hartnett cautioned that if the index approaches 6,666 points, the rally could overextend. Despite this, the bank's bull-and-bear indicator shows no signs of excessive optimism. Bitcoin's recent surge past $100,000 has fueled optimism, but experts like Mike Novogratz and Chris Burniske have expressed caution, warning of a potential correction.

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