Bitcoin's valuation is looking compressed, suggesting reduced downside risk compared to stocks.
Current prices are $BTC 64371 (0% 24h), $ETH 3038 (0% 24h), and $BNB 589 (0% 24h).
The surge in oil and gas prices has driven up inflation expectations, causing markets to adjust their bets on Federal Reserve rate cuts to near 40% chance of no rate cuts this year.
This shift in expectations may lead to a short-term price impact on $BTC, but its compressed valuation could provide support.
In the long term, a hawkish Federal Reserve may strengthen the US dollar, potentially affecting $ETH and $BNB prices.
My take is bullish on $BTC due to its reduced downside risk.
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