Bitcoin BTC/USD hit new all-time highs when it briefly crossed the $69,000 level on Tuesday. Pomp Investments’ Anthony Pompliano says it’s hard not to be bullish on Bitcoin right now.
What To Know: Over the last year, Bitcoin has been working its way back towards the highs it set in November 2021. It officially hit new all-time highs Tuesday morning, but the move was short-lived.
Most have attributed the recent rally to a surge in demand following the approval of spot Bitcoin ETFs in January. Many are looking ahead to April’s halving event as the next potential catalyst, but Pompliano believes Bitcoin’s price appreciation could accelerate in the coming weeks.
“If we go back and we look at past record high breaks where we eclipse the old all-time high, three of the four times, Bitcoin doubled in 18 days or less,” Pompliano said.
The ETF approvals have pushed demand for Bitcoin well above the available supply. Blackrock has added $1 billion to its fund in just the last day and now has more than $11 billion in its Bitcoin ETF, Pompliano said. There are several other ETFs experiencing high levels of demand, which is creating “massive inflows” for Bitcoin, he added.
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Once you break through all-time highs in any asset, you enter into a price discovery phase where the world tries to figure out what an asset should be worth, he explained.
“You add in the fact that we have the halving coming — and we are going to go from 900 Bitcoin a day coming into the supply to 450 — and it’s very hard to make an argument that Bitcoin is not going much higher and at a faster pace than we all expected,” Pompliano said.
CNBC’s Joe Kernen interjected and said people listening to the interview were going to think about mortgaging their houses based on Pompliano making the case that Bitcoin could trade up to $140,000 in just over two weeks.
Pompliano said he definitely would not recommend mortgaging a house to buy Bitcoin, but noted that most crypto investors recommend between 1% and 5% portfolio exposure to crypto.
“Bitcoin is up 20% in the last week, it’s up 60% in the last month and it’s up 200% in the last year. I’m not saying it’s going to $140,000. What I’m saying is three of the last four times, it doubled in 18 days and with the halving upon us, it’s just hard to not say this is likely to go much, much higher,” Pompliano said.
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Price Action: Bitcoin was well off the highs of the day, hovering around $65,000 at the time of writing, according to Benzinga Pro.
Photo: Shutterstock.
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