Pomp Investments Founder: Bitcoin Bull Market Underway
According to Anthony Pompliano, founder of Pomp Investments, the Bitcoin bull market has officially begun as the cryptocurrency surpasses the $43,000 mark. In an interview with CNBC Television, Pompliano explains that Bitcoin is following a four-year price pattern associated with halving events, where miners’ rewards are reduced by half.
This historic trend typically consists of a two-and-a-half to three-year period from the bottom of the bear market to the peak of the bull market, followed by a one to one-and-a-half-year market correction. Pompliano asserts that the recent surge above $40,000 can be attributed to two main factors: potential approval of spot market Bitcoin exchange-traded funds (ETFs) in January and anticipation of interest rate cuts by the Federal Reserve in early 2024.
The Factors Driving Bitcoin’s Rally
Pompliano suggests that investors are speculating on the approval of Bitcoin ETFs. As the January dates for potential approval approach, people are anticipating higher chances of approval and subsequent price increases. Furthermore, in the macro environment, investors believe that a return to quantitative easing will lead to rapid appreciation of various assets, including Bitcoin.
Instead of waiting for loose monetary policies to be implemented before purchasing assets, investors prefer to buy them just before these policies are enacted. This forward-looking approach stems from concerns that continued tight economic measures may push the economy into a recession.
Bitcoin’s Current Trading Price
At present, Bitcoin is trading at $43,043, reflecting a 4.2% increase over the past 24 hours.
Hot Take: Bitcoin Bull Market Kicks Off Amidst Anticipation
The Bitcoin bull market has officially started, according to Anthony Pompliano. Drawing from historical trends and market patterns, Pompliano believes that Bitcoin is set for a significant upswing. The recent surge in price can be attributed to expectations of Bitcoin ETF approval and the anticipation of interest rate cuts by the Federal Reserve. These factors have led investors to frontrun potential market movements and invest in Bitcoin before these events occur. As the bull market gains momentum, the key question on everyone’s mind is how high Bitcoin will soar.
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