Crypto analyst says that Bitcoin may be the next big catalyst when we flip this common misconception. Interest rates only become bullish for Bitcoin when they are falling.
“I think we should expect that having more accommodative policies may in fact actually not be the catalyst to help us go into a bull market,” Jeff Park, chief investment officer at ProCap Financial said Anthony Pompliano, Thursday.
“We have to accept that reality and possibility,” Park stated. The US Federal Reserve uses accommodative policies such as lower interest rates to increase liquidity, stimulate growth and reduce unemployment. Bitcoiners see this as a more favorable environment for Bitcoin and other riskier assets.BTC), as traditional investments like bonds and term deposits become less attractive.
Park believes that rising interest rates may not always be a bad thing for Bitcoin. He said Bitcoin’s next biggest upside catalyst — and potentially its “endgame” — may be its entry into what he called a “positive row Bitcoin,” When the price of an asset continues to increase even though interest rates at the US Federal Reserve are rising.
“Perfect holy grail” Bitcoin
“This is the mythical, elusive perfect holy grail of what Bitcoin is meant to be, which is when Bitcoin goes up as interest rates go up, which is very counterintuitive to the QE theory,” He said.
Park stated that this would be a bad idea. “risk-free rate itself.”
Park focuses on the financial system “is broken”
“In that world, what we’re saying is actually because the risk-free rate is not the risk-free rate, because the dollar hegemony is not the dollar hegemony, and we are no longer able to price the yield curve in the ways we’ve known,” Park said.
Related: Bitcoin price rebounds 11% above $65K: Who is buying the dip?
Park explains that the financial system is “broken” Relationship between US Treasury Department and Federal Reserve is “not at the level it should be” The national security policy is not a simple matter of deciding what to do.
Crypto traders on crypto predictions platform Polymarket predicts that the Fed will cut interest rates three times in 2026, with a probability of 27%.
Bitcoin was trading for $70.503 as of the date of this publication. This is a decline by 22.5% over the previous 30 days. according CoinMarketCap is a great place to start.
Magazine: Bitcoin’s ‘biggest bull catalyst’ would be Saylor’s liquidation: Santiment founder
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Source: cointelegraph.com
