Bitcoin Rally Could Prompt Fed Hikes Amid BTC Accumulation
Bloomberg Intelligence strategist Mike McGlone warns that a sustained Bitcoin rally could force the Federal Reserve to tighten monetary policy. The simultaneous upswing in equities, Treasury yields, gold and Bitcoin signals excess liquidity that may ignite volatility and drive inflation expectations higher. If the Bitcoin rally continues, 10-year Treasury yields could spike further, increasing the likelihood of Fed rate hikes. Since last Friday’s local high of $119,111, Bitcoin has retreated about 6%, trading near $111,980, but a strong rebound could reignite concerns about policy tightening and dampen short-term crypto bullishness. Traders should closely monitor CPI and PCE data, key Fed communications and bond market movements to gauge shifting monetary conditions. Meanwhile, Michael Saylor’s corporate treasury vehicle Strategy added another 430 BTC (approx. $51.4 million), bringing total institutional holdings to 629,376 BTC (over $70 billion). This large-scale accumulation underlines ongoing demand and potential supply tightening, reinforcing a long-term bullish outlook despite macro risk.
Neutral
This news combines a bullish signal—large-scale institutional BTC accumulation—with a bearish macro trigger—a potential Fed rate hike driven by a sustained Bitcoin rally and rising Treasury yields. In the short term, traders may see increased volatility and selling pressure if Fed communications signal tighter policy. Over the long term, continued corporate treasury buys underscore confidence in Bitcoin’s fundamentals and could support price floors once macro headwinds ease. The offsetting forces point to a neutral overall impact on Bitcoin’s price trajectory.