Stablecoin Demand Surges Ahead of Federal Reserve Rate Hike

Investors shifted their focus to stablecoins in anticipation of the Federal Reserve's interest rate decision on Wednesday, according to research from Talos.

The crypto market showed limited movement, with Bitcoin prices hovering between $76,000 and $80,000 in the weeks leading up to the policy update.

Markets had priced in a 92 percent probability of a 25 basis point hike, which would have pushed the target range to between 3.75 percent and 4.00 percent.

Chris Sullivan of Hyperion Decimus considered the quarter-point hike a certainty, noting that bond markets had already factored the increase into asset prices.