Bitcoin Is Trading at a Deep Discount Compared to AI Stocks — But There's a Catch You Should Know About

WHY IT MATTERS

Think of it like this: imagine two stores selling similar quality goods, but one store's prices have skyrocketed because of hype while the other's have stayed flat. Bitwise is essentially saying Bitcoin is the cheaper store right now compared to AI stocks. That could mean it's a bargain — or it could mean there's a reason it's cheaper. The 'reason' in this case is the Federal Reserve, which is the central bank that controls interest rates in the U.S. When the Fed keeps rates high (being 'hawkish'), it makes safer investments like bonds more appealing, which can pull money away from riskier bets like Bitcoin. For newcomers, this is a good example of how Bitcoin doesn't exist in a vacuum — big economic decisions by central banks directly affect its price.