The next big thing for Bitcoin may come from overturning the common belief that it’s only bullish for Bitcoin if interest rates drop, according to one crypto analyst.
“I think we should expect that even more accommodative policy may not actually trigger a bull market,” Jeff Park, chief investment officer at ProCap Financial, said in an interview with Anthony Pompliano on Thursday.
“We have to accept that reality and possibility,” Park said. Easing policies, such as interest rate cuts, are employed by the US Federal Reserve to stimulate economic growth, reduce unemployment, and increase liquidity. Bitcoiners often view these conditions as favorable for riskier assets such as Bitcoin (BTC), as traditional investments such as bonds and term deposits become less attractive.
Although rising interest rates are typically seen as negative for Bitcoin, Park said it may not last forever. He said the next biggest upside for Bitcoin, and potentially its “endgame”, could be entering what he calls a “positive-low Bitcoin” situation, where asset prices continue to rise even as Federal Reserve interest rates rise.
Bitcoin’s “perfect holy grail”
“This is the mythical, elusive, perfect holy grail of what Bitcoin really is. When interest rates rise, Bitcoin rises, which is very contrary to the theory of quantitative easing,” he said.
But Park said this idea would undermine “the risk-free rate itself.”
President Park emphasizes that the monetary system is ‘broken’
“In that world, what we’re really saying is because the risk-free rate is not the risk-free rate, because the dollar hegemony is not the dollar hegemony, and because we can no longer price the yield curve in the way we’ve always known,” Park said.
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Park said the monetary system is “broken” and the relationship between the Fed and the U.S. Treasury is “not where it should be” to drive the direction of national securities.
Traders at cryptocurrency prediction platform Polymarket have the highest probability of 27% that the Fed will cut interest rates three times in 2026.
According to CoinMarketCap, Bitcoin was trading at $70,503 at the time of publication, down 22.53% in the past 30 days.
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