Bitcoin Looks Cheap Against AI Stocks, But Fed Risk Remains
Bitwise says Bitcoin is historically undervalued compared to AI stocks, though a hawkish Fed could keep buyers on the sidelines.
If you've been watching Bitcoin lately and wondering whether it's actually a deal right now, Bitwise analysts have some interesting thoughts. According to the crypto asset manager, Bitcoin is currently trading in what they call a "historical value zone" — meaning, by their read of past price cycles, the coin looks genuinely discounted relative to where it has typically been.
The comparison that really stands out is Bitcoin versus AI-related stocks. While companies tied to artificial intelligence have been on a tear, Bitcoin hasn't kept pace, leaving what Bitwise sees as a meaningful valuation gap. In plain terms: if you believe crypto and high-growth tech compete for the same pool of investor dollars, Bitcoin looks like the cheaper ticket right now.
Read more Malta Drafts DeFi Rules That Would Bring DAOs Under Oversight →
But here's the catch — and there's always a catch. The Federal Reserve is still flashing hawkish signals, meaning policymakers are leaving the door open for higher interest rates or at least not rushing to cut them. When rates stay elevated, investors tend to favor safer, yield-generating assets over speculative ones like Bitcoin. That risk-off instinct can keep fresh money out of the crypto market no matter how attractive the valuation story sounds on paper.
Bitwise also flags the competition for liquidity as a real headwind. Essentially, there are a lot of shiny objects competing for investor attention and capital right now — AI stocks being the obvious example. Even if Bitcoin is "cheap," that doesn't automatically translate into buying pressure if those dollars are flowing elsewhere. Valuation alone rarely moves markets; you need a catalyst to unlock it.
So what does this all mean for you? Bitwise's framing suggests a classic setup: potentially attractive entry point, but macro conditions haven't fully cooperated yet. Watching the Fed's next moves will matter just as much as watching Bitcoin's price chart. Continue reading at Cointelegraph.
