|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
Bitcoin (BTC) Price Will Rise as the Federal Reserve Cuts Interest Rates, Says Anthony Pompliano
Sep 26, 2024 at 02:40 am
Anthony Pompliano, the founder and CEO of Professional Capital Management, delivered his thoughts on the current state of Bitcoin and how the Federal
Squawk Box had Anthony Pompliano, the founder and CEO of Professional Capital Management, on earlier today to discuss Bitcoin and how the Federal Reserve's recent interest rate cuts have impacted the broader cryptocurrency market.
A well-known Bitcoin advocate, Pompliano shared his thoughts on the digital asset in light of the economic changes and discussed its unique relationship with global liquidity.
Bitcoin's Recent Performance
According to Pompliano, Bitcoin has had an extraordinary year, with its price rising 140% and trading just below $64,000. He largely attributes this growth to broader economic policies, particularly the Federal Reserve's decision to cut interest rates by 50 basis points. This shift in monetary policy has helped Bitcoin become the top-performing asset of the year.
"Bitcoin is the best performing asset so far this year, with gold and oil futures trailing behind it," said Pompliano.
Pompliano also cited a recent study by Lyn Alden and Sam Gallagan that further bolsters his confidence in Bitcoin. The study suggests that Bitcoin is the most sensitive asset to changes in global liquidity, responding to liquidity shifts 83% of the time. According to Pompliano, this makes Bitcoin more reactive than traditional market assets such as the S&P 500.
He emphasized that Bitcoin's price fluctuations are more heavily tied to the flow of liquidity in the market than any other asset class, giving it a unique standing in the current economic environment.
Global Liquidity and Bitcoin's Sensitivity
As Pompliano explained it, the central banks' decisions to inject liquidity into the system have had a profound impact on Bitcoin. "We've just gone through a major regime change," noted Pompliano, referring to the recent transition from a period of monetary tightening to one of monetary easing. With central banks, including the Federal Reserve and others across the globe, injecting liquidity into the market, Bitcoin has become one of the prime beneficiaries of the influx of cheap money.
Pompliano highlighted that this period of increasing liquidity, combined with an expanding M2 money supply, is likely to result in continued Bitcoin gains. "Bitcoin should be a big winner here for the next couple of months," he explained. He also pointed out that other central banks, like China's, are also cutting rates and contributing to a more favorable environment for Bitcoin.
The Role of ETFs and Institutional Investment
While Pompliano is confident in Bitcoin's long-term potential, he also acknowledged the complexity of the current market dynamics, particularly with regard to institutional investment via ETFs (Exchange-Traded Funds). He noted that it's difficult to pinpoint exactly how much of Bitcoin's price movements are influenced by ETF inflows versus direct investments.
"There's a lot of trading going on," said Pompliano, noting that some investors are taking part in cash-and-carry trades rather than holding Bitcoin for the long term. This distinction is critical, as the behavior of long-term holders versus short-term traders can have varying effects on Bitcoin's price discovery. Despite the influence of traders, Pompliano emphasized that over 50% of Bitcoin remains held in long-term wallets, with holders not moving their Bitcoin on-chain for over a year.
Bitcoin's Relationship with Gold and Other Cryptocurrencies
When asked about Bitcoin's relationship with other assets, particularly gold and Ethereum, Pompliano expressed his belief that Bitcoin is set apart from other cryptocurrencies, including Ethereum, which he does not personally invest in. While he stopped short of labeling himself a Bitcoin maximalist, he described himself as a “monetary maximalist,” suggesting that he sees Bitcoin as the ultimate winner in the battle for sound money.
Pompliano is particularly interested in stablecoins as another avenue of growth within the cryptocurrency space. While Bitcoin remains his primary focus, he acknowledged that stablecoins have found significant product-market fit and could play an important role in the future of the digital economy.
Bitcoin's Future in the Face of Monetary Policy
Anthony Pompliano's outlook for Bitcoin remains optimistic, particularly as the world's central banks continue to flood markets with liquidity. He suggested that the current macroeconomic conditions are highly favorable for Bitcoin, which has consistently proven its resilience and potential in a world of increasing liquidity.
Pompliano's analysis of Bitcoin's sensitivity to global liquidity highlights why he believes it will continue to outperform other assets in the coming months. According to Pompliano, as the Federal Reserve continues its course of rate cuts and the M2 money supply expands, Bitcoin stands to benefit in ways that traditional assets like gold or oil cannot match. He thinks the central banks' shift from tightening to easing has created a new environment where Bitcoin emerges as the clear frontrunner due to its inherent sensitivity to liquidity.
For Pompliano, the key to Bitcoin's future success lies in its ability to respond to changes in global monetary policy. As long as liquidity continues
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- SEC Settles With TrueUSD Issuer TrueCoin and Lending Protocol Operator TrustToken Over Alleged Fraudulent Sale of Unregistered Investment Contracts
- Sep 27, 2024 at 04:25 am
- Federal securities regulators have reached an agreement with TrueUSD (TUSD) issuer TrueCoin and lending protocol operator TrustToken to settle charges for the alleged
-
- Hamster Kombat ($HMSTR): A Comprehensive Guide to the Viral Telegram-Based Tap-to-Earn Project
- Sep 27, 2024 at 04:25 am
- Amid much controversy around its airdrop allocation, Hamster Kombat ($HMSTR), a viral Telegram-based tap-to-earn project has finally opened for trading
-
- South Korea Fines Worldcoin $830,000 for Misuse of Personal Data
- Sep 27, 2024 at 04:25 am
- The South Korean Personal Information Protection Commission (PIPC) has imposed a penalty of 1.1 billion won ($830,000) on Worldcoin and its sister organization
-
- SEI Network (SEI) Saw an Applaudable Price Jump, With the SEI Token's Market Cap Cruising Above $1.6B
- Sep 27, 2024 at 04:25 am
- On September 24, the SEI team announced new ecosystem integrations through a post on X. Two yield-generating Liquid Staking Tokens (LSTs), Seiyan ETH and Super Seiyan ETH, developed by Nucleus and Dinero, have successfully entered the SEI ecosystem.
-
- Mawari Network Raises $10.8M to Scale Spatial Computing and XR Experiences
- Sep 27, 2024 at 04:25 am
- Mawari co-founder and CEO Luis Oscar Ramirez told The Block that the fundraising was structured as a simple agreement for future equity (SAFE) with token warrants.
-
- Nervos Network (CKB), Sui (SUI), and Cutoshi (CUTO) – The Altcoins That Are Outperforming The Market
- Sep 27, 2024 at 04:25 am
- Large-cap cryptocurrencies are struggling and facing overall bearish sentiment, but at this time, a few promising altcoins are overperforming the markets, beating all the competition. These altcoins protect investors against drawdowns and give hope to survive in disappointing market conditions.
-
- ORDI Airdrop: Check Eligibility for $ORDI Full guide
- Sep 27, 2024 at 04:25 am
- Obtaining your blockchain $ORDI tokens is painless! Just go through these quick steps and start using your tokens instantly.
-
- Ethena Labs Releases New Fiat-Backed Stablecoin UStb Backed by BlackRock and Powered by Securitize
- Sep 27, 2024 at 04:25 am
- Ethena Labs, operating in the decentralized finance industry, has recently released its latest product. The fiat-backed stable coin is known as the UStb.
-
- Crypto Analyst Bluntz Leans Bullish on Under-the-Radar Altcoin SAGA, Predicts Major Move for Memecoins WIF and POPCAT
- Sep 27, 2024 at 04:25 am
- The widely followed cryptocurrency analyst and trader known as Bluntz is leaning bullish on one under-the-radar altcoin while offering his insight on two memecoins.