Bitcoin remains highly dependent on interest rates in the short term. Although the Fed kept its benchmark interest rates at 3.5 to 3.75 percent, it struck a clearly hawkish tone: inflation remains elevated, uncertainty is high, and interest rate cuts are not on the horizon. This weighs on liquid assets such as $BTC (+0,51%).
Nevertheless, crypto is showing relative strength. Following the Fed’s latest signals, Bitcoin fell by only 1.6 percent, while stocks also declined significantly. At the same time, outflows from digital asset ETPs slowed to $149 million.
Hyperliquid remains an exciting development: the SpaceX-linked perpetual contract reached a daily trading volume of over $1.3 billion. On-chain markets are increasingly becoming genuine venues for price discovery.
(Author: James Butterfill, CoinShares’ Head of Research)
