Grayscale assessed the recent Fed rate hike not as a cyclical shift but as a mid-cycle adjustment. Grayscale explained, "There was a similar rate hike in 1997, but its impact on the asset market at that time was limited. This rate hike is not expected to significantly impact the cryptocurrency market." They added, "What's noteworthy are stablecoin issuers like Circle and Tether. These companies have a high proportion of interest income generated from their held assets. Therefore, they have a structure where profits increase as interest rates rise."
