A renewed bet on Federal Reserve rate hikes is simultaneously pressuring Bitcoin, gold, and tech stocks, erasing last week's relief rally across asset classes. Traders are repositioning ahead of a key US inflation reading, with the Warsh-led Fed widely expected to maintain a hawkish stance. The simultaneous decline of traditional and crypto hedges suggests markets are pricing in a higher-for-longer interest rate environment rather than treating digital assets as an independent safe haven. When rate expectations tighten, risk-adjusted returns on non-yielding assets like gold and Bitcoin become less attractive, driving capital toward cash or short-duration instruments. The correlated selloff underscores how macroeconomic conditions continue to dominate crypto price action, limiting Bitcoin's ability to decouple from broader financial markets during periods of monetary policy uncertainty.
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