High interest rates suppress interest-free assets, but regulatory tailwinds provide backing. Bitcoin’s long-term logic is still there—it just needs a little more time to hold out.

ME News Report, May 16 (UTC+8), Gray Research Director Zach Pandl stated that against the backdrop of rising inflation in the United States, the Federal Reserve may maintain high interest rates for a long time, which will have three core impacts on the crypto market. He believes that as the US CPI approaches 4%, the new Federal Reserve Chair Kevin Warsh has almost no room to cut interest rates, and the market's expectation for the first rate cut has been pushed back to September 2027. Gray pointed out that long-term high interest rates will put pressure on "currency devaluation trades" like Bitcoin. Since Bitcoin, like gold, is a non-interest-bearing asset, higher real interest rates will increase the opportunity cost of holding dollar assets. However, he remains optimistic about Bitcoin's long-term prospects and believes that regulatory benefits such as the CLARITY Act can partially offset this pressure. Furthermore, he believes that a high interest rate environment will drive