Grayscale Says Fed Rate Hike Will Have Limited Impact on Crypto Markets

The Federal Reserve raised its policy rate to a range of 3.75% to 4.00%, and the research division of major asset manager Grayscale said the impact on cryptocurrency markets will be limited. The rate hike was the first since July 2023, and the vote was unanimous at 12-0.

In a note dated the 17th, Grayscale characterized the decision as "a mid-cycle adjustment rather than a cyclical shift." Zach Pandl, head of research, pointed out that the one or two rate hikes anticipated during 2026 are unlikely to drive significant changes in investor capital allocation.

At the same time, Grayscale noted that elevated interest rates are a tailwind for stablecoin issuers' earnings. Circle and Tether invest a substantial portion of their stablecoin reserve assets in interest-bearing instruments, meaning the longer rates remain high, the more related revenue can be expected to expand.

In Japan, the Bank of Japan will decide on the 18th whether to implement an additional rate hike. With monetary policy trajectories diverging between the U.S. and Japan, the combined impact on cryptocurrency markets is drawing close attention.

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