Analysis: BTC May Rise During Rate Hike Cycles, Monetary Easing May No Longer Be a Bull Market Catalyst

According to Odaily, ProCap Financial Chief Investment Officer Jeff Park stated in an interview with Anthony Pompliano that the market may need to reassess the traditional logic that "loose monetary policy drives bitcoin bull markets." He suggested that more accommodative policies (such as interest rate cuts) may no longer be the key catalyst for bitcoin entering a bull market in the future. The most important upward catalyst for bitcoin in the next phase could be entering what he calls the "positively correlated bitcoin" stage, where prices continue to rise even in a Federal Reserve rate-hiking environment. He referred to this state as bitcoin's "endgame form" or "perfect holy grail," meaning 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 traditional financial system's logic is broken, including the risk-free rate pricing mechanism, the dominance of the US dollar, and the way the yield curve is priced. In addition, data from prediction platform Polymarket shows that traders currently assign the highest probability, 27%, to the Federal Reserve cutting rates three times cumulatively in 2026. (Cointelegraph)