Grayscale: Delayed rate cuts could prolong BTC weakness

Grayscale has suggested that a delay in interest rate cuts could prolong bearish conditions for Bitcoin. In a recent report, the asset manager noted that renewed inflationary pressures in the U.S. make it likely the Federal Reserve will maintain its high-interest-rate policy for the time being, potentially slowing BTC's upward momentum. While this could weigh on non-interest-bearing assets like Bitcoin and gold, Grayscale suggested that regulatory improvements, such as the CLARITY Act, could provide a partial offset. Conversely, the report highlighted that the profitability of stablecoin issuers could improve, explaining that for every 25 basis point increase in short-term rates, Circle's (USDC) annual revenue grows by approximately $190 million.