Bitcoin may decouple from Fed policy
Despite the US Federal Reserve's aggressive interest rate hikes, Bitcoin's next bull market may not depend on more 'accommodative' monetary policy. This is the view of crypto executive Jeff Park, who believes that Bitcoin reaching a point where its price keeps rising even as the Fed raises rates would be 'the endgame' for the cryptocurrency market.
Throughout much of 2022, Bitcoin and other crypto assets have been in a 'bearish' trend amid the Fed's monetary tightening. Rate hikes have led to capital outflows from risky assets, including cryptocurrencies. However, Park believes that in the long run, Bitcoin will be able to function successfully even in a high-interest-rate environment.
'If Bitcoin demonstrates that it can grow in the face of Fed rate hikes, that will be a critical milestone for the market. It will mean that BTC has stopped being just a speculative instrument and has become a full-fledged store of value,' Park noted.
In the expert's opinion, Bitcoin reaching such an 'endgame' would mean that the cryptocurrency has passed the stress test and become a viable asset for long-term investment. This, in turn, would open up new prospects for further growth in the crypto market.