🚨 Fed Rate Hike Boosts Stablecoins, Squeezes Bitcoin Borrowers
📊 Alpha Breakdown:
A Fed rate hike of 0.25% lifted the SOFR to 5.35%, boosting income for stablecoin issuers like Circle while squeezing Bitcoin borrowers in DeFi. Reserve earnings now account for 95% of Circle’s revenue, but higher financing costs erode loan margins. The split shows why not all crypto firms benefit equally from tighter monetary policy in the current market....
🔗 Full Breakdown on YourWeb3Guy:
https://www.yourweb3guy.com/news/fed-rate-hike-boosts-stablecoins-squeezes-bitcoin-borrowers
#cryptonews #cryptocurrency #bitcoinnews
📊 Alpha Breakdown:
A Fed rate hike of 0.25% lifted the SOFR to 5.35%, boosting income for stablecoin issuers like Circle while squeezing Bitcoin borrowers in DeFi. Reserve earnings now account for 95% of Circle’s revenue, but higher financing costs erode loan margins. The split shows why not all crypto firms benefit equally from tighter monetary policy in the current market....
🔗 Full Breakdown on YourWeb3Guy:
https://www.yourweb3guy.com/news/fed-rate-hike-boosts-stablecoins-squeezes-bitcoin-borrowers
#cryptonews #cryptocurrency #bitcoinnews