Bitcoin’s next major bull cycle may not depend on looser monetary policy, challenging one of the most common assumptions in crypto markets. The long-held belief that Bitcoin thrives only when interest rates fall is increasingly being questioned by market observers watching how the asset behaves in a high-rate environment.
Rising Interest Rates and Bitcoin Price Dynamics
Traditionally, higher US interest rates have been viewed as a headwind for Bitcoin. Tighter policy tends to strengthen bonds and savings instruments, pulling capital away from risk assets. However, a growing view is that Bitcoin could eventually decouple from this pattern and continue rising even as rates move higher.
Such a shift would represent a fundamental change in how Bitcoin is perceived. Instead of acting like a high-risk speculative asset, it would begin to function more as an alternative monetary benchmark, less sensitive to central bank decisions.
“We have to accept that reality and possibility,” Park said in podcast .
A Test of the Global Monetary System
If Bitcoin prices can sustainably rise alongside increasing interest rates, it would suggest deeper issues within the global financial system. In that scenario, the concept of a “risk-free rate” may lose credibility, and confidence in traditional reserve currencies could weaken.
Bitcoin is trading at $70,503 at the time of publication, down 22.53% over the past 30 days.
Despite recent price volatility, expectations around future policy shifts remain mixed. Some traders anticipate rate cuts in the coming years, while others believe Bitcoin’s next growth phase could be driven by adoption, structural demand, and reduced reliance on monetary easing.
As Bitcoin matures, its reaction to interest rate cycles may redefine its role in global finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.