Grayscale sees limited crypto impact from Fed rate hike

Grayscale assessed the latest Federal Reserve rate hike as a mid-cycle adjustment rather than a cyclical shift, and said a similar rate increase in 1997 also had only a limited effect on asset markets. The firm said the latest hike is unlikely to have a major impact on the cryptocurrency market, while stablecoin issuers such as Circle and Tether warrant closer attention. Grayscale explained these companies derive a large share of earnings from interest income on reserve assets, giving them a structure in which profits rise as interest rates increase.