Zach Pandl, the head of Grayscale Research, said that if the Federal Reserve suspends interest rate hikes, Bitcoin is expected to catch up with the performance of the US stock market. Since the start of the Iran War at the end of February, US stocks have risen 9%, Bitcoin has fallen 1%, and gold has fallen 20%. Market expectations for the Federal Reserve to raise interest rates in response to inflation have suppressed the performance of Bitcoin and gold. The grayscale basic scenario is for the Federal Reserve to temporarily suspend interest rate hikes. Zach Pandl stated that the rise in real interest rates for fiat currency has increased the opportunity cost of holding Bitcoin and gold. Bitcoin combines the attributes of a scarce digital commodity and a public chain asset in investment portfolios. If the possibility of interest rate hikes decreases, Bitcoin is expected to catch up with stock performance.
