Bitcoin (CRYPTO: BTC) may be positioned for a catch-up rally if the Federal Reserve refrains from raising interest rates, according to Bitwise Chief Investment Officer Matt Hougan.
Since the start of the Iran conflict in late February, U.S. equities have gained roughly 9%, while Bitcoin has slipped 1% and gold has fallen 20%.
In a "The Stack" post on June 22, Grayscale Head of Research Zach Pandl noted that the divergence comes as investors increasingly price in the possibility of tighter monetary policy amid inflation concerns.
One-year Fed rate expectations have risen about 60 basis points, while roughly half of Federal Reserve officials believe rate hikes could be appropriate in 2026, Hougan noted.
The European Central Bank has already moved to raise rates.
