Bitcoin has NEVER seen an era of rising interest rates and tight money before. This time IS DIFFERENT !!!!! Ignore this fact at your own risk
Higher interest rates favor the savers and disfavor the borrowers. It reduces, first, productivity and, later, consumption. However, I'm not sure there's a strict correlation between those two and bitcoin. Aren't many use bitcoin as savings and/or store of value?
It’s not correlated, because Bitcoin still outperforms any interest rate a bank could offer.
The people that would put their money into the bank for interest(for a loss because it still won’t outperform inflation), will be the people who buy Bitcoin last anyways. So i dont think it influences the demand side that much.
The only effect it would have, is that speculators can’t easily ape into Bitcoin or any other investments with borrowed money. Which would probably favor Bitcoin, because the market would be more hesitant to get into braindead projects or empty hypes. So higher interest rates could actually favor Bitcoin, and for sure won’t hurt it.
And as we saw now, it’s better for Bitcoin if people don’t leverage too much into it. We don’t need actors like celsius bringing down the whole market, because they gamble too much.
There's no reason to compare bank interests with Bitcoin's performance. Banks offer a stable or floating rate for your investment/deposit every 3/6/12 months. Bitcoin on the other hand, doesn't guarantee you a certain percentage of performance, but the possibility to rise in the future. It can't guarantee you that it'll earn its money. History has shown that the probabilities of recovery are decent, however, you're not earning an X amount per Y days/months. It's an asset similar to how stocks perform.
Don't get me wrong, bank's interest is close to zero and can't outperform the yearly inflation rate.