Bitcoin's next big catalyst could come from reversing the favored belief that Bitcoin rates of interest are only bullish after they are falling, in line with a crypto analyst.
“I believe we should always expect that more accommodative policy may very well not be the catalyst for entering a bull market,” Jeff Park, chief investment officer of ProCap Financial, said in an interview with Anthony Pompliano on Thursday.
“We have to just accept this reality and possibility,” Park said. The US Federal Reserve uses accommodative measures resembling rate of interest cuts to stimulate economic growth, reduce unemployment and increase liquidity. Bitcoiners often see these conditions as being more favorable for riskier assets like Bitcoin (BTC), as traditional investments like bonds and time deposits grow to be less attractive.
Jeff Park spoke with Anthony Pompliano on The Pomp Podcast. Source: Anthony Pompliano
Rising rates of interest are typically viewed as a negative for Bitcoin, but Park said this may occasionally not be the case perpetually. He said Bitcoin's next biggest upward catalyst – and potentially its “end game” – may very well be entry into what he called a “positive Bitcoin series” by which the asset's price continues to rise at the same time as Federal Reserve rates of interest rise.
“Perfect Holy Grail” for Bitcoin
“This is the mythical, elusive perfect holy grail of what Bitcoin is speculated to be, which is when Bitcoin goes up when rates of interest go up, which may be very contrary to the QE theory,” he said.
However, Park said this concept would undermine the “risk-free rate itself.”
Park stresses that the monetary system is “broken”
“In this world, we actually say that since the risk-free rate will not be the risk-free rate, because dollar hegemony will not be dollar hegemony, and we are not any longer in a position to price the yield curve the way in which we used to,” Park said.
Park explained that the monetary system is “broken” and the connection between the Fed and the US Treasury is “not at the extent it must be” to advance the direction of national securities.
Traders on crypto forecasting platform Polymarket give the best probability (27%) of a complete of three Fed rate cuts in 2026.
According to CoinMarketCap, Bitcoin is trading at $70,503 on the time of publication, down 22.53% over the past 30 days.
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