Bitcoin faces risk as rate hikes loom

Rising oil prices and geopolitical tensions are fueling inflation fears, causing a sell-off in traditional safe-haven assets and shifting market expectations towards a potential U.S. rate hike. This marks a significant reversal from earlier predictions of rate cuts. The bond market is experiencing a global downturn, with U.K. gilt yields reaching levels not seen since 2008. Bitcoin, however, is showing resilience, potentially pricing in a recession while other assets have not, and remains one of the better-performing assets since the recent conflict began.