Anthony Pompliano, the founder of Pomp Investments, shared his perspective on bitcoin’s current state and future potential during a CNBC “Squawk Box” interview. Pompliano highlighted bitcoin’s unique position as both a risk-on asset and a hedge against inflation.
He underscored a significant milestone for bitcoin, achieving the highest weekly, monthly, and quarterly close before the halving event.
Anthony Pompliano Sees 300% Surge in BTC’s Price
Pompliano pointed out that historically, such milestones have preceded substantial appreciation in bitcoin’s value, citing instances where bitcoin appreciated at least 300% during bull markets following similar occurrences.
Addressing skepticism from Andrew Ross Sorkin regarding Bitcoin’s role as an inflation hedge in emerging markets, Pompliano referenced the popularity of Bitcoin in Nigeria but acknowledged that in some other developing countries, dollar-backed stablecoins are preferred due to massive inflation.
Nevertheless, Pompliano argued that Bitcoin’s core value propositions remain compelling globally, serving as a hedge against economic instability or the declining purchasing power of the dollar.
He added:
“We just hit a really important milestone before the halving; we just had the highest weekly, monthly, and quarterly close for Bitcoin. The last four times that that’s happened, Bitcoin has appreciated at least 300% through the rest of the bull market.”
Increasing Inclination Towards Speculative Assets
The conversation delved into societal trends, with Pompliano noting the increasing inclination towards speculative assets amid economic uncertainties. He attributed this trend partly to the dollar’s declining purchasing power over the years.
“We have become a society of gamblers … why is that occurring? The dollar has lost 25% of its purchasing power in four years,” he said.
Matt Hougan, Chief Investment Officer of Bitwise Investments, echoed Pompliano’s sentiments in a recent memo to investment professionals.
Hougan critiqued media sensationalism around bitcoin’s price movements and advised investors to focus on long-term investment principles rather than short-term gains. He emphasized upcoming events for Bitcoin, such as the halving and the potential approval of spot Bitcoin ETFs by major financial platforms.
Confidence in Bitcoin’s Future
Hougan expressed confidence in Bitcoin’s future, citing its impressive valuation increase over the past 15 months and the launch of spot Bitcoin ETFs.
He projected a significant influx of capital into the digital asset market if global wealth managers allocate even a small percentage of their portfolios to bitcoin. This allocation could potentially enhance the risk-adjusted returns of traditional investment portfolios and mark a major shift in global wealth allocation.
Hougan recently also said that institutional investors could funnel as much as $1 trillion into Bitcoin through Exchange-Traded Funds (ETFs). Meanwhile, the price of the digital asset has been revolving around $60,000 and $70,000 after making an all-time high in March.
He added:
“As we wait, bitcoin seems likely to chop sideways on small changes in sentiment. But long-term, we believe bitcoin is in a raging bull market. Not only is it up nearly 300% in the past 15 months, but there are strong reasons to think that will continue.”
Both Pompliano and Hougan advocate for a broader understanding of Bitcoin beyond its immediate price fluctuations. They view Bitcoin as a transformative asset with the potential to reshape traditional investment landscapes.
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