Bitcoin’s next bull market may not come from more 'accommodative policies'

Bitcoin’s adjacent large catalyst whitethorn travel from the communal presumption being flipped connected its caput that involvement rates are bullish for Bitcoin lone erstwhile they fall, according to a crypto analyst.

“I deliberation we should expect that having much accommodative policies whitethorn successful information really not beryllium the catalyst to assistance america spell into a bull market,” ProCap Financial main concern serviceman Jeff Park said during an interrogation with Anthony Pompliano connected Thursday.

“We person to judge that world and possibility,” Park said. Accomodative policies, specified arsenic lowering involvement rates, are employed by the US Federal Reserve to stimulate economical growth, trim unemployment, and summation liquidity. Bitcoiners often spot these conditions arsenic much favorable for riskier assets specified arsenic Bitcoin (BTC), arsenic accepted investments similar bonds and word deposits go little attractive.

Jeff Park spoke to Anthony Pompliano connected The Pomp Podcast. Source: Anthony Pompliano

Rising involvement rates are usually seen arsenic a antagonistic for Bitcoin, but Park said that whitethorn not beryllium the lawsuit forever. He said Bitcoin’s adjacent biggest upside catalyst — and perchance its “endgame” — whitethorn beryllium its introduction into what helium called a “positive enactment Bitcoin,” wherever the asset’s terms continues to emergence adjacent arsenic US Federal Reserve involvement rates rise. 

“Perfect beatified grail” for Bitcoin

“This is the mythical, elusive cleanable beatified grail of what Bitcoin is meant to be, which is erstwhile Bitcoin goes up arsenic involvement rates spell up, which is precise counterintuitive to the QE theory,” helium said.

However, Park said this thought would undermine the “risk-free complaint itself.”

Park emphasizes the monetary strategy “is broken”

“In that world, what we’re saying is really due to the fact that the risk-free complaint is not the risk-free rate, due to the fact that the dollar hegemony is not the dollar hegemony, and we are nary longer capable to terms the output curve successful the ways we’ve known,” Park said.

Related: Bitcoin terms rebounds 11% supra $65K: Who is buying the dip?

Park explained that the monetary strategy is “broken” and the narration betwixt the Fed and the US Treasury is “not astatine the level it should be” to thrust the absorption of nationalist securities.

Traders connected the crypto prediction platform Polymarket are giving the highest probability, 27%, to 3 full Fed involvement complaint cuts successful 2026.

Bitcoin is trading astatine $70,503 astatine the clip of publication, down 22.53% implicit the past 30 days, according to CoinMarketCap.

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