Bitcoin valuation offers reduced downside risk versus stocks

Asset manager Bitwise suggests bitcoin may have already priced in tighter monetary policy, making stocks more vulnerable to macroeconomic shocks. Recent surges in oil and gas prices have increased inflation expectations, leading traders to price in a higher chance of no Federal Reserve rate cuts this year. While equities have recently begun to decline, bitcoin has been correcting since late 2025, indicating it has already adjusted to liquidity shifts and changing risk appetite. This suggests digital assets may offer a more compressed valuation with less downside sensitivity compared to equities, which entered the year at elevated levels.