Bitcoin BTC/USD is trading at its highest levels of the year as optimism surrounding a potential spot Bitcoin ETF continues to climb. Pomp Investments' Anthony Pompliano expects the world's largest cryptocurrency to rally hundreds of percent above its old highs during the next bull run.
What To Know: Wednesday on CNBC's "Squawk Box," Pompliano said the greatest investors buy when others are selling and sell when others are buying. When it comes to Bitcoin and other risk assets, he said the smart money is buying.
"The best investors in the world act completely differently than the herd. And so right now the herd is saying we're risk-off. Every great investor I know is going risk-on. They're buying these assets at suppressed prices," Pompliano said.
The Bitcoin bull noted that one of the most remarkable things about Bitcoin is that people aren't selling: 76% of Bitcoin hasn't been sold in the last year and 56% of it hasn't been sold in the last two years, despite the wild swings in price.
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A lot of people want to get in, but want to do so through an ETF, which is a big part of why the price has climbed in recent months, he said. Blackrock and several other major financial firms have amended ETF applications in recent weeks, which suggests approval is nearing, he said.
The actual approval could be a sell the news event, Pompliano said, adding that as money flows into those funds, it could lead to significant appreciation longer term.
When asked how much higher Bitcoin can rally above its all-time highs (approximately $69,000), he suggested the next bull run is going to look similar to what has occurred in the past.
"Hundreds of percent appreciation when we get into these bull markets has been the norm. I don't see that changing now," Pompliano said.
$BTC Price Action: Bitcoin was up 1.56% over a 24-hour period at $34,597 at the time of publication, per Benzinga Pro.
Photo: Eivind Pedersen from Pixabay.
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