Anthony Pompliano, the Founder of Pomp Investments, recently discussed the driving factors behind Bitcoin’s surge to surpass $44,000, a fresh yearly high. After months of trading within a tight range, the digital currency now appears to be on an upward trajectory.
In an interview with CNBC, Pompliano attributed the recent rally to several factors. Firstly, speculation surrounding the potential approval of a Bitcoin Exchange-Traded Fund (ETF) by the SEC in early January has led investors to anticipate a price increase. Additionally, in the current macroeconomic environment, investors are looking to potential quantitative easing measures, which could drive up the prices of various assets, including Bitcoin.
Pompliano dismissed the idea of a single reason for the price surge but pointed out the inflow of capital into the market. He noted that 70% of all Bitcoin in circulation hasn’t moved in a year, suggesting a relatively illiquid market where prices need to rise to accommodate everyone.
When asked about the momentum continuing into 2024, Pompliano confidently asserted that Bitcoin’s bull market has begun. He referenced historical market cycles, typically following a four-year pattern, and suggested that the recent correction signals the start of a new bullish phase. He also warned of the potential risks of short selling in the crypto market, highlighting the unpredictability and chaos, which has led many investors to avoid short positions.
In conclusion, Pompliano remained bullish on Bitcoin, citing his previous statement on X: “More than 57% of all bitcoin in circulation has not moved in the last 2 years. Holders rode the asset from $69,000 down to $16,000 and back up to $44,000. Incredible. An all-time high amount unmoved.” Actions, he suggested, speak louder than words.
