ProCap Financial chief investment officer Jeff Park said bitcoin’s next major catalyst may come from a shift in how markets think about interest rates.

Park made the comments in a Thursday interview with Anthony Pompliano.

Rethinking the usual rate-cut narrative

Park argued that more accommodative policy from the US Federal Reserve, such as lower interest rates, may not be what pushes bitcoin into its next bull market.

He said the bigger test is whether bitcoin can continue rising even while rates rise.

A “holy grail” scenario

Park described what he called bitcoin’s potential “endgame,” where the asset moves into a “positive row” and climbs despite tighter monetary policy.

He said:

“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.”

“The monetary system is broken”

Park said that if bitcoin rises alongside higher rates, it would challenge assumptions about the “risk-free rate” and the dollar’s role in global markets.

He added that the relationship between the Fed and the US Treasury is “not at the level it should be” to drive the direction of national securities.

Traders on Polymarket are assigning the highest probability, 27%, to three Fed rate cuts in 2026.

Bitcoin was trading around $70,503 at the time of publication, down 22.53% over the past 30 days.