Analysis: BTC May Rise During Interest Rate Hike Cycle, Monetary Easing Policies May No Longer Be Bull Market Catalysts

Odaily News: Jeff Park, Chief Investment Officer of ProCap Financial, stated in an interview with Anthony Pompliano that the market may need to re-examine the traditional logic that "loose monetary policy drives Bitcoin bull markets." More accommodative policies (such as interest rate cuts) may no longer be the key catalysts for Bitcoin entering a bull market in the future. The most important upward catalyst for Bitcoin in its next phase may be entering what he calls the "positively correlated Bitcoin" stage, where prices continue to rise even in an environment of Federal Reserve interest rate hikes. He described this state as Bitcoin's "endgame" or "perfect holy grail," signifying that Bitcoin would break free from the narrative of relying on quantitative easing (QE) liquidity. Jeff Park also emphasized that if this scenario materializes, it could mean the breakdown of the logic of the traditional financial system, including the risk-free interest rate pricing mechanism, the hegemonic status of the US dollar, and yield curve pricing methods. Additionally, data from the prediction platform Polymarket shows that traders currently assign the highest probability, at 27%, to the Federal Reserve implementing three cumulative interest rate cuts throughout 2026. (Cointelegraph)