Grayscale: If the Fed pauses rate hikes, Bitcoin could see a rally

CoinFeed, June 23 - Grayscale Research Head Zach Pandl wrote that since the outbreak of the Iran war in late February, U.S. stocks have risen 9%, Bitcoin has fallen 1%, and gold has dropped 20%. AI spending has supported stock market performance, while Bitcoin and gold have lagged partly due to market expectations that the Fed may raise rates to curb inflation. Over the past year, Fed rate expectations have risen by about 60 basis points, about half of Fed officials believe a rate hike could be appropriate in 2026, and the ECB has already taken the lead in raising rates. As non-interest-bearing monetary assets, gold and Bitcoin compete with fiat currencies, and rising rates increase the opportunity cost of holding Bitcoin and gold, thus dampening demand. However, Grayscale believes the Fed will not raise rates, and if this judgment is correct, Bitcoin's price could catch up with the stock market's performance.