Bitcoin’s Resilience and Holding Pattern
During an appearance on CNBC’s “Squawk Box,” Anthony Pompliano discussed various aspects of Bitcoin with co-anchor Joe Kernen. Pompliano highlighted the importance of looking back at Bitcoin’s performance in previous years to understand its current state. He noted that Bitcoin’s resilience during difficult times convinced many investors to buy into the cryptocurrency. Pompliano also pointed out that a significant percentage of Bitcoin has been held by investors, indicating a strong holding pattern.
Supply and Demand Imbalance
Pompliano explained that Bitcoin’s price surge has been driven by a supply and demand imbalance, which has been exacerbated by low-interest rates and money printing. While he acknowledged that current monetary policies are temporary, he predicted that governments will eventually revert to looser policies, which would have a positive impact on Bitcoin.
Optimism for Bitcoin ETFs
Pompliano expressed optimism regarding the approval of spot Bitcoin ETFs by the U.S. SEC. He mentioned that BlackRock is preparing for ETF approval by seeding a fund. Pompliano argued that BlackRock wouldn’t take such a risk without good reason. He also stated that the political composition of the approval committee doesn’t significantly affect Bitcoin’s value or functionality.
Bitcoin’s Indifference to Political Events
Pompliano described Bitcoin as the “most disciplined central bank in the world” because it doesn’t react to news or geopolitical shifts. However, he acknowledged that the price of Bitcoin is sensitive to these factors. Despite this sensitivity, Pompliano emphasized that Bitcoin is largely unaffected by political and geopolitical events.
The Market Signals Worth Paying Attention To
Pompliano highlighted the 100% increase in Bitcoin’s price since the beginning of the year, suggesting that the market is sending signals worth paying attention to. He mentioned that while general market sentiment might be risk-averse, savvy investors are taking a risk-on approach, particularly with assets like Bitcoin.
Bitcoin’s Resilience to Government Bans
Pompliano clarified that even if the U.S. government were to ban Bitcoin, it would not deter global interest in the cryptocurrency. He explained that Bitcoin itself, being a decentralized protocol, is largely unaffected by political stances. While companies dealing with Bitcoin may care about Washington’s stance, Bitcoin as a protocol remains resilient.
Future Price Predictions and Volatility
Pompliano predicted that Bitcoin will continue to show appreciation in bullish markets, as it has historically done so. He emphasized that Bitcoin is a true free-market asset, not subject to bailouts or circuit breakers, which contributes to its volatility.
Hot Take: Bitcoin’s Strength and Global Interest
Anthony Pompliano’s discussion on CNBC highlighted the resilience of Bitcoin and its current holding pattern among investors. Despite external factors like political events, Bitcoin remains largely indifferent due to its decentralized nature. The approval of spot Bitcoin ETFs and the increase in Bitcoin’s price signal positive trends for the cryptocurrency. Even if governments were to ban Bitcoin, global interest in it would persist. As a true free-market asset, Bitcoin continues to exhibit volatility but also shows potential for appreciation in bullish markets.
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