Stablecoins, the Beating Heart of Crypto Markets

Macro

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17/11/2025

Given the current macroeconomic context, we are seeing the emergence of two major risks likely to have a decisive impact. Firstly, the risk linked to the interest rate cycle, a combination of persistent inflation and a still uncertain monetary policy trajectory. Secondly, the rise in AI-related valuations exposes the market to the risk of a sharp rebalancing.

Navigating Fed Fears & AI Bubble Bursting

by Adam Morgan McCarthy AND thOMAS PROBST

The relationship between Fed interest rates and the price of Bitcoin has been characterized by a negative correlation. Indeed, rate hikes or expectations of more restrictive monetary policy toughen the economic climate and reduce the appetite for volatile, high-beta assets, which directly impacts BTC. Conversely, cycles of easing support liquidity, which tends to support prices too. Thus, when interest rates rise, the price of Bitcoin falls, and in contrast, when interest rates fall, the price of Bitcoin rises.

The current macroeconomic context perfectly reflects this dependence. When Federal Reserve Chair Lisa Cook stated that the expected December rate cut wasn’t 100% certain, the price of Bitcoin experienced a significant crash. This episode highlights how changes in interest rate expectations, even without concrete policy intervention, can make investors doubt and trigger significant movements in cryptocurrency markets.

If such a small statement can cause an outsized market reaction, a scenario where rates are maintained for longer, or even increased, would likely exert a far stronger and more persistent drag on liquidity and risk appetite.

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Data Used In This Analysis

Our industry-leading crypto research is the direct result of combining our proprietary data with world-class in-house experts. Bringing the very best of Kaiko’s people and crypto data together, we unlock the unique insights that form the basis for our discoveries and analysis. We believe in doing so, our data speaks for itself, helping both our clients and the wider industry get a better understanding of the crypto ecosystem, and the evolving trends and patterns in motion at a regional and global scale.

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Macro

17/11/2025 Data Debrief
Navigating Fed Fears & AI Bubble Bursting
Given the current macroeconomic context, we are seeing the emergence of two major risks likely to have a decisive impact.

Written by Adam Morgan McCarthy
Stablecoin

11/11/2025 Data Debrief
Stablecoins, the Beating Heart of Crypto Markets
This week, we’re releasing our latest Asset Ranking. This time the scoring has developed beyond a simple liquidity ranking to encompass a broader range of metrics that truly measure the tradability of an asset. As well as looking at volume, liquidity and market capitalization the new ranking also considers market availability, maturity, and custody scores.

Written by Adam Morgan McCarthy
Layer 1

04/11/2025 Data Debrief
Introducing the Kaiko Crypto Asset Ranking
This week, we’re releasing our latest Asset Ranking. This time the scoring has developed beyond a simple liquidity ranking to encompass a broader range of metrics that truly measure the tradability of an asset. As well as looking at volume, liquidity and market capitalization the new ranking also considers market availability, maturity, and custody scores.

Written by Adam Morgan McCarthy
Derivatives

28/10/2025 Data Debrief
Time to Rethink Crypto Hedging
Following recent market shocks, we’re examining hedging practices in crypto markets. Perps dominate trading volume, dwarfing options, but is it time for regime change and could options be the answer? The October 10 crash reminded us how extreme crypto’s volatility can be, and how current hedging tools are limited due to the relatively small size of the market.

Written by Adam Morgan McCarthy