ProCap Monetary chief funding officer Jeff Park stated bitcoin’s subsequent main catalyst could come from a shift in how markets take into consideration rates of interest.
Park made the feedback in a Thursday interview with Anthony Pompliano.
Rethinking the same old rate-cut narrative
Park argued that extra accommodative coverage from the US Federal Reserve, resembling decrease rates of interest, might not be what pushes bitcoin into its subsequent bull market.
He stated the larger take a look at is whether or not bitcoin can proceed rising even whereas charges rise.
A “holy grail” state of affairs
Park described what he known as bitcoin’s potential “endgame,” the place the asset strikes right into a “optimistic row” and climbs regardless of tighter financial coverage.
He stated:
“That is the legendary, elusive good holy grail of what Bitcoin is supposed to be, which is when Bitcoin goes up as rates of interest go up, which could be very counterintuitive to the QE idea.”
“The financial system is damaged”
Park stated that if bitcoin rises alongside greater charges, it will problem assumptions concerning the “risk-free charge” and the greenback’s function in world markets.
He added that the connection between the Fed and the US Treasury is “not on the stage it must be” to drive the path of nationwide securities.
Merchants on Polymarket are assigning the best likelihood, 27%, to a few Fed charge cuts in 2026.
Bitcoin was buying and selling round $70,503 on the time of publication, down 22.53% over the previous 30 days.