The same Fed rate hike can help stablecoins and hurt Bitcoin borrowers
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A Federal Reserve rate hike can benefit stablecoin issuers by increasing returns on reserves held in interest-bearing assets such as Treasury bills. At the same time, higher borrowing costs can pressure Bitcoin investors and businesses with floating-rate debt or leveraged positions. The divergent effects underscore that tighter monetary policy may strengthen stablecoin economics while weighing on Bitcoin demand and borrowers’ ability to hold through volatility.
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