Grayscale Sees Little Impact from Fed Rate Hike on Bitcoin Price

The recent interest rate hike by the Federal Reserve has had a brief and modest impact on the price of Bitcoin, but according to Grayscale's crypto research team, it is unlikely to have any significant effect.

In their note on Thursday, Zach Pandl, head of research at Grayscale, wrote that the move was just a mid-cycle adjustment and not a cyclical change. He doubts that the one or two rate hikes expected in 2026 will lead to much change in capital allocation.

Pandl pointed out that Bitcoin has historically done well in low-interest-rate environments and slid when interest rates were increased. This is because low interest rates provide more liquidity for investors to take risks and buy assets like Bitcoin.