Higher Interest Rates for Longer Seen Positive for Stablecoins — Market Talk
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Higher inflation is seen as likely to keep interest rates at their current levels, if not provoke the Federal Reserve to raise rates. In a note, Zach Pandl of Grayscale says that bitcoin may face headwinds from higher-for-longer rates, while stablecoins may benefit. For stablecoins like Circle's USDC, the strength that the U.S. dollar gets would translate to stronger stablecoins as well. However, for bitcoin, the story is different. "Higher real interest rates (nominal rate minus inflation) raise the opportunity cost of holding zero-yield alternatives, creating headwinds for ownership," Pandl says. Bitcoin is up 2% to $81,231. (kirk.maltais@wsj.com)
source: https://www.tradingview.com/news/DJN_DN20260514008974:0/
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