News

According to ChainCatcher, Grayscale Head of Research Zach Pandl stated that, with U.S. inflation heating up again, the Federal Reserve may maintain a high interest rate policy for a prolonged period, which could have three core impacts on the crypto market. He believes that as the U.S. CPI approaches 4%, the new Federal Reserve Chairman Kevin Warsh has almost no room for rate cuts, and the market currently expects the first rate cut to be postponed until September 2027. Grayscale points out that prolonged high interest rates will put pressure on “currency debasement trades” such as Bitcoin. Since Bitcoin, like gold, is a non-yielding asset, higher real interest rates increase the opportunity cost of holding dollar assets. However, Grayscale remains optimistic about Bitcoin’s long-term prospects and believes that regulatory tailwinds, such as the CLARITY Act, can partially offset related pressures. In addition, Grayscale sees a high interest rate environment as a catalyst for accelerating tokenization of fixed income assets. Currently, yields on U.S. dollar fixed income products have surpassed most DeFi yields, for example, the USDC lending rate on Aave is about 3.6%, while the short-term corporate bond yield is about 4.5%. Grayscale also noted that stablecoin issuers will benefit from high interest rates. Since the GENIUS Act prohibits stablecoins from paying interest to users, issuers can retain returns generated from reserve assets. Grayscale estimates that for every 25 basis point increase in short-term rates, Circle’s income will rise by about 190 million U.S. dollars.

This move marks a strategic expansion of the company's business landscape, aiming to seize growth opportunities in the global small appliance market.

NOPA report surprises the market! U.S. soybean crush drops to a 7-month low, soybean oil inventories unexpectedly plunge—does the market's supply-demand balance need to be reassessed?