Fed Rate Pause Could Trigger Bitcoin Rally, Says Grayscale Research Head

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According to Grayscale research head Zach Pandl, on June 23, if the Federal Reserve pauses rate hikes, Bitcoin could outperform stocks. Since the Iran war began in late February, the S&P 500 has risen 9%, while Bitcoin declined 1% and gold dropped 20%. Pandl attributed Bitcoin and gold's underperformance partly to market expectations of Fed rate hikes to combat inflation. However, Grayscale's base case is that the Fed will pause hikes. If correct, Bitcoin could catch up to stock market gains. Pandl noted that 1-year Fed rate expectations have risen roughly 60 basis points since the conflict began.
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