Analysis: BTC may rise during the interest rate hike cycle, and monetary easing policies may no longer be a bullish catalyst.

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BTC1,63%

Odaily Planet Daily News: ProCap Financial Chief Investment Officer Jeff Park stated in an interview with Anthony Pompliano that the market may need to reevaluate the traditional logic of “loose monetary policy driving Bitcoin bull markets.” More accommodative policies (such as rate cuts) may no longer be the key catalysts for Bitcoin entering a bull market in the future. The most important upward catalyst for Bitcoin in the next phase may be entering its so-called “positive correlation Bitcoin” stage, where prices continue to rise despite the Federal Reserve’s rate hikes. He describes this state as Bitcoin’s “ultimate form” or “perfect Holy Grail,” meaning Bitcoin will 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 logic is being broken, including the risk-free rate pricing mechanism, the dominance of the US dollar, and the yield curve pricing method. Additionally, data from the prediction platform Polymarket shows that traders currently assign the highest probability—27%—to the Federal Reserve cutting rates three times in 2026. (Cointelegraph)

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