Bitcoin influenced by stock market, rate hike outlook pressures BTC

Bitcoin is heavily influenced by stock market movements, and the current interest-rate outlook could add pressure on BTC, according to Bloomberg Intelligence senior commodity strategist Mike McGlone. Fed funds futures are pricing in about 0.5 percentage points of rate hikes over the next year. Under these conditions, BTC has typically shown weakness before rebounding when futures-market expectations shift toward easier monetary policy. A decline in the stock market is a key factor that could alter monetary policy expectations, but it would be challenging for metals or crypto assets to rise independently while equities are falling. Currently, risk assets, including BTC, are largely driven by the direction of the stock market.