Future Bitcoin Rally Might Not Rely on 'Accommodative Monetary Policies'
Crypto executive Jeff Park suggests that Bitcoin achieving sustained price growth during US Federal Reserve interest rate increases would represent "the endgame" for the digital asset.
The primary driver for Bitcoin's upcoming significant rally might stem from challenging the prevailing belief that declining interest rates are the only scenario in which Bitcoin experiences bullish conditions, a crypto analyst has suggested.
"I think we should expect that having more accommodative policies may in fact actually not be the catalyst to help us go into a bull market," Jeff Park, chief investment officer at ProCap Financial, stated in a Thursday interview with Anthony Pompliano.
"We have to accept that reality and possibility," Park stated. The US Federal Reserve implements accommodative policies, including interest rate reductions, to boost economic expansion, lower unemployment levels, and enhance market liquidity. Members of the Bitcoin community typically view such conditions as more conducive to risk-oriented assets like Bitcoin (BTC), since conventional investment vehicles such as bonds and fixed-term deposits offer diminished returns.
Increasing interest rates have historically been interpreted as detrimental to Bitcoin's performance, though Park suggested this relationship might not hold true indefinitely. According to Park, Bitcoin's most significant potential upward catalyst — possibly representing its "endgame" — could emerge through its transition into what he described as a "positive row Bitcoin," a scenario where the cryptocurrency's valuation climbs even as the US Federal Reserve implements rate hikes.
Bitcoin's "perfect holy grail" scenario
"This is the mythical, elusive perfect holy grail of what Bitcoin is meant to be, which is when Bitcoin goes up as interest rates go up, which is very counterintuitive to the QE theory," he stated.
Park noted, however, that such a scenario would challenge the fundamental concept of the "risk-free rate itself."
Current monetary system "is broken," Park contends
"In that world, what we're saying is actually because the risk-free rate is not the risk-free rate, because the dollar hegemony is not the dollar hegemony, and we are no longer able to price the yield curve in the ways we've known," Park explained.
According to Park's analysis, the existing monetary framework is "broken" and the working relationship between the Federal Reserve and the US Treasury falls short of "the level it should be" for effectively guiding the trajectory of national securities.
On Polymarket, the crypto prediction platform, traders are assigning a 27% probability — the highest among options — to the scenario of three total Federal Reserve interest rate reductions throughout 2026.
At the time of publication, Bitcoin is currently valued at $70,503, representing a 22.53% decline over the preceding 30-day period, based on data from CoinMarketCap.