Bitcoin’s nearly 50% correction appears to signal more than just another routine cycle downturn. According to Jeff Park, Partner and CIO at ProCap Financial, the market may be witnessing a structural shift in Bitcoin’s behavior, one that could be accelerated by the possibility of Kevin Warsh leading the Federal Reserve.
Speaking with Anthony Pompliano, Park argued that Bitcoin has effectively been in a bear market for an extended period. He emphasized that the traditional narrative, where looser monetary policy and expanding liquidity automatically drive Bitcoin higher, no longer provides a reliable explanation for price action.
Kevin Warsh’s Potential Impact on Bitcoin
Park’s thesis centers on the idea that Bitcoin’s long-assumed correlation with global liquidity has weakened significantly. Despite estimates showing global liquidity climbing toward $170 trillion throughout 2025, alongside strong performance across various asset classes, Bitcoin has failed to respond in the way many investors historically expected.
This divergence suggests that the cryptocurrency market may be entering a new phase, where broader macroeconomic factors, institutional positioning, and regulatory developments play a larger role than simple liquidity expansion. In Park’s view, a Federal Reserve led by Kevin Warsh could further reinforce this transition, potentially reshaping how investors evaluate Bitcoin within the global financial system.$BTC
