According to Grayscale's research director, Zach Pandl, the U.S. Federal Reserve will keep interest rates high until September 2027 amid rising inflation in the U.S. and increasing energy prices. The prolonged high-interest-rate environment creates three impacts on crypto assets: higher holding costs for non-yielding assets like Bitcoin, encouraging fixed-income asset flows to move on-chain, and increased revenue growth for stablecoin issuers.

Pandl estimates that Circle and similar stablecoin issuers will see revenue increase by approximately $190 million for each 25 basis point rate hike by the Fed, as they hold interest-earning assets but cannot pass the yields to token holders. Bitcoin faces short-term pressure from higher opportunity costs, although Pandl remains optimistic about its long-term prospects.