Grayscale Analyzes Rate Hike as Mid-term Adjustment, Limited Impact on Bitcoin
The U.S. Federal Reserve Board (FRB) raised the policy interest rate from 3.75% to 4.00% on September 16. This marks the first rate hike since July 2023, with a unanimous vote of 12 to 0. Grayscale's research department evaluated this rate hike in a note dated the 17th as "not a cyclical change, but a mid-term adjustment." Zach Pandl, Grayscale's Head of Research, pointed out that he finds it hard to believe that one or two expected rate hikes within 2026 will bring significant changes to capital allocation. He likened the current situation to the rate hikes of 1997, noting that the upward trend of the NASDAQ Composite Index continued at that time. On the other hand, he mentioned that the rapid rate hikes during the inflation suppression phase in 2022 affected Bitcoin (BTC) due to the opportunity cost of non-interest-bearing assets. FRB Chairman Kevin Warsh pointed out that the state of inflation being too high has persisted for too long.
-- Price
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