- Despite recent dips, investors remain bullish on Bitcoin.
- Exec believes supply shock can lead to price appreciation.
The crypto market appears to be in a whirlwind as Bitcoin [BTC] continues to decline despite having tested $68,000 on 21st March. The king coin dropped by almost 7% last week, bringing it to trade at $63,974 at press time.
However, investors remain ever so optimistic about the asset’s future. On 22nd March, Anthony Pompliano, founder of Pomp Investments, spoke to Yahoo Finance during the inaugural Bitcoin Investor Day in NYC. The exec shared his insights on BTC’s resilience, remarking,
“Bitcoin obviously is one of the best-performing assets. It’s a trillion-dollar asset now, and it’s infiltrated now into the traditional financial world.”
Will Bitcoin go up?
Pompliano highlighted that Bitcoin’s simple nature has contributed significantly to its value. He explained that BTC allows investors to invest in an asset that isn’t devalued while simultaneously increasing their purchasing power.
This simplicity has made its way into Wall Street, where individuals and institutions see BTC as a viable investment option. But how does that reflect on the price front? The exec commented:
“Now, is it going to go up in the short term, medium term, long term? How much? When? All these different things come into how much do you want to allocate. How do you put it into a portfolio? Are you trading, or are you just buying and holding? But really, at the end of the day, it’s just, ok, if demand outstrips supply, the price is going to go up.”
He believes this economic principle supports the increasing interest in Bitcoin. This, in turn, leads to a bullish future that is against the backdrop of limited supply.
2024 Bitcoin halving is different
Bitcoin’s recent behavior has been nothing short of surprising. Ergo, the question: What is different about this halving? Pompliano explained,
“We violated a lot of the rules that people previously relied on in Bitcoin….we also had never hit an all-time high before the Bitcoin halving. So I think what it just means is like we’re in uncharted territory.”
The exec pointed out that HODLers will likely view this cycle optimistically, expecting further price surges. Yet, there’s also a degree of unpredictability that can lead to widely different outcomes.