Anthony Pompliano, the founder and partner at Pomp Investments, offered a bullish outlook on Bitcoin’s price trajectory, with downside risk firmly capped at $50,000.
What Happened: In an interview with CNBC on Tuesday, he attributed Bitcoin’s recent price surge to several factors, including the increasing adoption of Bitcoin ETFs and the growing recognition of Bitcoin as a hedge against inflation.
He highlighted Bitcoin’s outperformance compared to gold, a traditional safe-haven asset, pointing out that gold has failed to keep pace with inflation over the past five years.
“Bitcoin is down about 8%, 9% in the recent market fluctuations, which is actually a small drawdown compared to most times in bull markets,” Pompliano explained, contextualizing Bitcoin’s performance against past market behaviors.
Pompliano highlighted that despite significant geopolitical tensions and market uncertainties, the foundational dynamics of Bitcoin have supported its resilience.
Also Read: Telegram Co-Founder Pavel Durov Has Had ‘A Few Hundred Million Dollars In Bitcoin’ For Years
He also addressed the recent price adjustments following the Middle East tensions, noting that, “The joke is that the real Bitcoiners want the price to go down so they can buy more of it.”
Discussing the mechanics behind weekend price drops, Pompliano attributed them to the inaccessibility of banks, which hampers the ability to buy Bitcoin due to a lack of new dollar inflows into crypto accounts.
“The only thing you really can do is if you’re holding Bitcoin you can sell it. But most of the people holding bitcoin are fully allocated,” he added, explaining the constrained selling during weekends.
Pompliano remains optimistic about Bitcoin’s price ceiling: “In terms of upside, I think we get over $100,000 in the next year, 12 to 18 months, maybe we could get to 150 to 200 somewhere in that range.”
Why It Matters: Contrasting Pompliano’s optimistic forecast, gold proponent Peter Schiff tweeted a stark warning, saying “Wall Street is about to start selling,” which would be “a recipe for a Bitcoin crash.”
Schiff’s caution suggests that the influx of Wall Street capital might not be as forthcoming as some expect, potentially leading to a price crash if current holders begin to sell off.
His projection is backed by a view that Wall Street’s growing involvement and subsequent new dollar inflows will buoy the cryptocurrency to new heights.
What’s Next: The upcoming Future of Digital Assets conference on Nov. 19 is poised to delve deeper into these issues.
The conference will explore the implications of cryptocurrency integrations into legacy financial systems and the transformative potential of digital assets like Bitcoin.
Read Next: U.S. Senators Lummis, Gillibrand Renew Push For Stablecoin Bill
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