Grayscale Says Fed’s 25-Basis-Point Rate Hike to Have Limited Impact on Crypto
JH Kim
Summary
- Grayscale Research said the Federal Reserve’s 25-basis-point benchmark rate hike is likely to have a limited impact on the cryptocurrency market.
- It said the latest rate hike alone is unlikely to materially change the investment environment for the cryptocurrency market.
- It also said higher interest rates could positively support earnings growth for stablecoin issuers Circle (CRCL) and Tether.
Forecast Trend Report by Period
Grayscale Research said a 25-basis-point increase in the Federal Reserve’s benchmark interest rate is likely to have a limited impact on the cryptocurrency market.
Cointelegraph reported on September 17 that the rate hike alone is unlikely to materially alter the investment environment for digital assets. One basis point equals 0.01 percentage point.
Grayscale also said higher interest rates could support earnings growth for stablecoin issuers Circle (CRCL) and Tether.
Both companies manage a substantial portion of their stablecoin reserve assets in interest-bearing instruments, meaning related income could increase if rates remain high.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.