Grayscale: Interest Rate Hike Won't Trouble Bitcoin

Grayscale's crypto research team believes that Bitcoin is unlikely to be affected by the Federal Reserve's interest rate hike. On Wednesday, the Fed raised rates for the first time since 2023, causing a brief stir in the market. However, Bitcoin has stabilized and currently trades at a modest 1% higher over a 24-hour period.

Zach Pandl, head of research at Grayscale, argues that this move is a 'mid-cycle adjustment' rather than a cyclical change. He doubts that the one or two rate hikes expected for 2026 will lead to significant changes in capital allocation.

Pandl notes that Bitcoin has historically performed well in low-interest-rate environments and has slid when interest rates have increased. However, this time around feels more like 1997, when the Federal Reserve did a one-off hike and the Nasdaq kept moving higher.