No, when interest rate goes up for USD, there is more incentive to hold on to USD rather than an alternate currency (gold, cryptocurrency, etc) Therefore selling pressure is expected.

Youre correct, as far as you go, but failed to address the point of the article.

Interest has not gone down, it is going down if you want to compare it to a RW interest rate situation, imagine you had an opportunity to invest in a 24 month CD. The interest rate was .075%/day.

If you then learn that the interest yield on the CD is going down to .058% a day in a month, then even lower, the CD does not become a more desirable investment, it beccomes a less desirable investment.

That is to say that no matter how much an X% SP interest rate is encouraging people to hold steem power right now, a lower percentage interest rate will encourage them less in the future.

Of course, this is a wipe right now, but as an incentive to hold for 24 months, it just doesn't track.