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Jeff Park: Bitcoin is in a bear market with broken liquidity correlations, US policy is shifting towards centralization, and the importance of ‘peacetime’ vs. ‘wartime’ Bitcoin | The Pomp Podcast

cryptobriefing.com 2 h

Bitcoin

Key Takeaways

Bitcoin is currently in a bear market, and more accommodative policies might not trigger a bull market.
The historical correlation between global liquidity and Bitcoin’s performance has been disrupted.
Global liquidity is currently around $170 trillion and continues to rise.
Accommodative monetary policies may not be the catalyst for a Bitcoin bull market.
The current US administration is attempting to take economic control from the Federal Reserve.
There is a concept of ‘peacetime Bitcoin’ and ‘wartime Bitcoin’ reflecting different economic conditions.
US crypto policy is trending towards centralization, opposing the original decentralization ideals.
Bitcoin’s importance will grow as the world becomes more fragmented and oppressive.
Bitcoin’s original mission emphasizes censorship resistance and decentralization.
Kevin Warsh is seen as a figure with the courage and expertise to challenge financial norms.
The future of Bitcoin is tied to societal changes and the geopolitical climate.
The evolving regulatory landscape in the US is moving towards centralization, impacting crypto’s future.

Guest intro

Jeff Park is a Partner and Chief Investment Officer at ProCap Financial. He previously served as Head of Alpha Strategies and Portfolio Manager at Bitwise Asset Management. He holds a B.A. in Economics and International Relations from Stanford University and is a CFA charterholder.

Bitcoin and the bear market

We are likely in a bear market for Bitcoin, and accommodative policies may not catalyze a bull market.

— Jeff Park
Accommodative policies may not be the catalyst for a bull market in Bitcoin.
The bear market has persisted for quite some time, challenging the notion that monetary policy will boost Bitcoin.
I think we’re in a bear market and I think we have been in a bear market for quite a bit.

— Jeff Park
Understanding the current economic environment is crucial for navigating the crypto markets.
The bear market challenges the assumption that monetary policy will positively influence Bitcoin prices.
Having more accommodative policies may in fact actually not be the catalyst to help us go into a bull market.

— Jeff Park
The bear market requires a new perspective on how monetary policy affects Bitcoin.

Global liquidity and its impact

The correlation between global liquidity and Bitcoin’s performance has been broken.

— Jeff Park
Global liquidity is around $170 trillion and has been steadily increasing.
I would say it has been going up pretty steadily in 2025… I think we are now around $170,000,000,000,000.

— Jeff Park
The broken correlation between liquidity and Bitcoin suggests a shift in market dynamics.
The truth is that’s been broken for quite some time.

— Jeff Park
Understanding global liquidity trends is essential for analyzing market conditions.
The increase in global liquidity provides a factual basis for market trend analysis.
The shift in correlation could affect investment strategies in the crypto space.

US economic control and the Federal Reserve

The current administration is attempting to wrest control of the economy away from the Federal Reserve.

— Jeff Park
The administration uses deregulation, tax cuts, tariffs, and attempts to weaken the US dollar.
It does feel like the current administration in the United States is trying to wrestle control of the economy away from the Federal Reserve.

— Jeff Park
This shift impacts monetary policy and the broader economic landscape.
Understanding the political and economic landscape is crucial for grasping these changes.
The administration’s actions reflect a significant shift in economic control dynamics.
The impact of these policies on the economy and crypto markets is profound.
The relationship between government policy and central banking is evolving.

Peacetime Bitcoin vs. wartime Bitcoin

There is a distinction between ‘peacetime Bitcoin’ and ‘wartime Bitcoin’ that reflects different economic conditions and policy influences.

— Jeff Park
Wartime Bitcoin suggests that monetary policy is not the driving factor for growth.
Wartime means it’s actually not monetary policy that is driving the future outlook for how we’re thinking about growth.

— Jeff Park
This framework provides a unique perspective on Bitcoin’s value proposition.
Understanding the geopolitical and economic climate is essential for this analysis.
The concept highlights Bitcoin’s role in varying economic contexts.
Peacetime vs. wartime Bitcoin reflects different policy influences on the asset.
This distinction is crucial for analyzing Bitcoin’s potential in different scenarios.

Centralization trends in US crypto policy

The trend in US crypto policy is moving towards centralization, which contrasts with the original ideals of decentralization in the crypto space.

— Jeff Park
This shift could impact the future development and adoption of crypto.
If you really look hard at what’s been happening here in the US as well from a crypto policy perspective it’s moving towards a model of centralization.

— Jeff Park
Understanding the regulatory landscape is crucial for navigating the crypto industry.
The trend towards centralization contrasts with the original decentralization ideals.
This shift represents a significant change in the crypto industry’s trajectory.
The impact of centralization on crypto’s future is a critical consideration.
The evolving regulatory landscape poses challenges and opportunities for crypto.

Bitcoin’s future relevance

Bitcoin will gain importance as the world becomes more fragmented and oppressive.

— Jeff Park
The geopolitical climate influences Bitcoin’s role as a financial asset.
These are the energy that I think re drives the importance of Bitcoin.

— Jeff Park
Understanding societal changes is crucial for predicting Bitcoin’s future relevance.
Bitcoin’s importance is tied to its ability to respond to societal fragmentation.
The future of Bitcoin is linked to geopolitical and societal shifts.
The relevance of Bitcoin is driven by its role in a fragmented world.
This prediction highlights Bitcoin’s potential in response to global changes.

Bitcoin’s original mission

The original mission of Bitcoin is about censorship resistance and decentralization, not just regulatory clarity.

— Jeff Park
Bitcoin’s foundational principles emphasize freedom and decentralization.
It’s about censorship resistance, it is about decentralization and it’s about freedom money.

— Jeff Park
Understanding Bitcoin’s core values is crucial amidst evolving market structures.
The original mission contrasts with current regulatory discussions.
Bitcoin’s mission emphasizes its role as a tool for financial freedom.
The focus on decentralization and censorship resistance remains central.
This perspective highlights the enduring values of Bitcoin in the crypto space.

Kevin Warsh and financial innovation

Kevin Warsh has the courage and expertise to challenge the status quo in financial systems.

— Jeff Park
Warsh’s potential impact on financial innovation and reform is significant.
He really represents somebody who has great domain expertise about how things work.

— Jeff Park
Understanding Warsh’s role is crucial for anticipating changes in financial systems.
Warsh’s expertise positions him as a key figure in financial reform.
His ability to challenge norms is essential for future innovation.
Warsh’s influence could shape the future of crypto and financial systems.
This insight highlights the importance of expertise in driving financial change.