Bitcoin Trapped in Fed-Fueled 'Lose-Lose' Scenario as Stocks Reach Extremes

Bloomberg Intelligence strategist Mike McGlone sees Bitcoin and crypto trapped in a 'lose-lose' scenario as the Federal Reserve tightens policy while US equity valuations reach historic extremes.

The S&P 500's Shiller CAPE ratio is around 41, nearing the dot-com era's peak of 44.2, with several other valuation indicators suggesting negative long-term returns.

Crypto faces a risk-adjusted performance problem as the Bloomberg Galaxy Crypto Index has flatlined against beta since 2017, despite roughly four times the volatility.