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Bloomberg Intelligence strategist Mike McGlone argues that digital assets are trapped in a lose-lose environment, driven by restrictive Federal Reserve policy and US equity valuations approaching historic extremes.
The warning comes as Bitcoin ($BTC) recovers toward $82,000 following last week's rate decision, yet faces underlying demand weakness identified by onchain data provider Glassnode.
The Federal Reserve unanimously raised its benchmark rate by 25 basis points to 3.75%-4.00% last week, marking its first increase in more than three years.
Policymakers' median projections place the federal funds rate at 4.1% at the end of both 2026 and 2027, indicating another potential hike this year and no median rate cuts next year.
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