Bitcoin
Bulls, don’t panic! Analyst says Bitcoin price will stabilize after mid-year drop
Bitcoin simply went on a wild ride, plummeting 10% in the blink of an eye and sending shivers down the spines of investors everywhere. Many are now severely affected, facing significant losses and liquidations.
In an exclusive interview with Michelle Makori, lead anchor and editor-in-chief of Kitco News, Anthony Pompliano, founder of Pomp Investments and host of The Pomp Podcast, shared his perspective on the future of Bitcoin.
Bitcoin Price Analysis
Bitcoin has recently seen significant price movements, reaching $70,000 in mid-June before falling below $60,000 and stabilizing above $61,000.
Pompliano went on to share insights into Bitcoin’s potential future trajectory. Drawing references from similar record moments, Pompliano highlighted Bitcoin’s historical tendency to double in price after halving and surpassing its all-time high.
“People often see big price movements in Bitcoin at the beginning of the year and in the last quarter (Q4). In the middle of the year (2nd and 3rd quarter) the price generally remains more stable. He believes that’s what’s happening now.”
Influential market participants
Pompliano identified three main categories of buyers that influence Bitcoin market dynamics: pension funds, sovereign wealth funds and ETF opportunities. He highlighted the potential impact of institutional participation, noting cases where pension funds have made substantial returns from exposure to Bitcoin. Furthermore, he highlighted the growing interest of sovereign wealth funds.
The role of Federal Reserve decisions
Pompliano believes that the Federal Reserve’s upcoming interest rate decisions will play a crucial role in Bitcoin’s price movements. He predicts that whether the Fed cuts rates before or after the election, the price of Bitcoin will likely rise over the next 18 months.
Pompliano also predicts significant price changes once Ethereum ETFs hit the market. He sees this as a major event for the cryptocurrency industry, potentially opening the doors to more institutional investment.
Bitcoin x dollar
To conclude, Pompliano addressed a common economic concern, stating that Bitcoin does not threaten the US dollar. Instead, he believes that both Bitcoin and the dollar are strengthening simultaneously. He noted that while weaker currencies are in decline, Bitcoin is seen as a store of value and the dollar continues to be the preferred currency for spending. Pompliano also believes that the US government will not ban Bitcoin, citing support from political parties and major financial institutions.
He mentioned that former President Trump has become a vocal supporter of Bitcoin, which could positively influence cryptocurrencies and the market.
Love it or hate it, Bitcoin is here to stay. What are your thoughts?