Grayscale: Even if the Federal Reserve raises interest rates by 25% this month, cryptocurrency prices may still rise

ChainCatcher news, Grayscale's latest research report indicates that the Federal Open Market Committee did not hold a meeting in April and will meet again on May 3 to determine whether to implement a 25 basis point rate hike, with the market currently assigning an 80% probability to this outcome. While rate hikes have historically been detrimental to the prices of risk assets, if the Federal Open Market Committee's decision aligns with market expectations, cryptocurrency prices may benefit.

Grayscale also stated that while the exact impact of future developments on Bitcoin prices remains uncertain, factors such as additional rate hikes and a decline in inflation rate (from 6% in February to 5% in March) are very much in line with a bullish outlook for Bitcoin in the future.

Moreover, the failures of First Republic (FRC), Silicon Valley Bank (SVB), Silvergate Bank (SI), and Signature Bank (SBNY) indicate that investors continue to show interest in cryptocurrencies during periods of economic uncertainty. (Source link)