Interest rates are an opportunity cost of holding assets. Lower interest rates generally increase asset prices but this is dependent on the information content of interest rate changes.Risk-on asset prices generally increase as interest rates decline, except when interest rates are extremely low. Extremely low interest rates indicate economic weakness, inverting the usual relationship.Inflation is likely to remain relatively weak but a combination of fiscal policy and tighter labor markets could create genuine sustained inflationary pressure for the first time in a decade.As a risk-on asset, Bitcoin is likely to benefit from a continuation of the low-inflation environment with loose monetary policy.