Rate Hike Has Limited Impact, Stablecoin Earnings Get Boost

Grayscale Research has released its findings on the impact of the Federal Reserve's 25-basis-point rate hike on the cryptocurrency market. According to their analysis, this latest rate hike is unlikely to have a significant effect on digital assets.

In fact, Grayscale said that higher interest rates could even support earnings growth for stablecoin issuers Circle (CRCL) and Tether. This is because these companies manage a substantial portion of their reserve assets in interest-bearing instruments, which would increase related income if rates remain high.