Analysis: BTC may rise during the interest rate hike cycle; loose monetary policy may no longer be a catalyst for a bull market.

According to Odaily Odaily, 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 the Bitcoin bull market." 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 stage may be entering its so-called "positively correlated Bitcoin" phase, where the price continues to rise even under a Federal Reserve interest rate hike environment. He calls this state Bitcoin's "endgame form" or "holy grail," meaning that Bitcoin will break free from the narrative of relying on quantitative easing (QE) liquidity. Jeff Park also emphasized that if this scenario occurs, it could mean that the logic of the traditional financial system is broken, including the risk-free interest rate pricing mechanism, the hegemony of the US dollar, and the yield curve pricing method. Furthermore, data from the prediction platform Polymarket shows that traders currently give the highest probability, at 27%, that the Federal Reserve will cut interest rates three times in total throughout 2026. (Cointelegraph)