Grayscale said the Federal Reserve’s latest rate increase resembles a midcycle adjustment rather than a major monetary-policy shift. The Federal Open Market Committee raised its target interest-rate range by 25 basis points on Sept. 16, to 3.75%-4%, saying the move was intended to bring inflation back to its 2% target more promptly. Grayscale said the hike, along with a possible second increase this year, was unlikely to cause a major change in digital-asset markets. It contrasted the current single increase with the Fed’s cumulative 525-basis-point tightening from March 2022 through July 2023, which lifted returns on cash and interest-bearing assets and raised the opportunity cost of holding Bitcoin. The impact may differ across crypto business models: stablecoin issuers can benefit from higher interest income on reserve assets, while stronger yields on tokenized bonds and money-market funds may draw capital into on-chain financial products. Bitcoin briefly rose above $77,000 on Sept. 17, while liquidations of short crypto positions during the rebound approached $260 million.