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Cryptocurrency News Articles
Crypto Analyst Anthony Pompliano Remains Optimistic About Bitcoin (BTC) Despite Its Recent Drop Below the $100,000 Milestone
Dec 23, 2024 at 01:00 am
Pomp Investments founder outlined two key factors driving Bitcoin's future growth.
Crypto analyst Anthony Pompliano, who is also the founder of Pomp Investments, remains optimistic about Bitcoin (CRYPTO: BTC) despite its recent drop below the $100,000 milestone.
What Happened: In a recent interview with FOX 5, Pompliano predicted that "2025 will continue to be a great year for Bitcoin."
Two key factors will drive Bitcoin's future growth, according to Pompliano.
"One, you're going to continue to get printing of money both in the United States and globally. And then two is you have a Federal Reserve that is cutting interest rates," he said.
Highlighting the increasing M2 money supply and cheaper capital from lower interest rates, he said these factors are likely to fuel market gains.
Pompliano also discussed why Bitcoin's growth and market cap expansion have made it more attractive to institutional investors.
"When Bitcoin was at $1,000, large capital pools viewed it as too small and risky," he explained. But Bitcoin's rise to a $2 trillion market cap has changed perceptions.
"Now all of a sudden everyone's like, ‘Wait a second, I can put money in it. It's derisked.'"
As Bitcoin's price climbs, more institutional capital is likely to flow into the asset, he noted.
"As large pools of capital come in to buy a finite-supply asset, price should continue to go up," said Pompliano, highlighting Bitcoin's limited supply as a key driver of its long-term value.
Despite its recent volatility, Pompliano's outlook underscores the growing institutional acceptance of Bitcoin and its potential to achieve greater heights as a premier digital asset.
Bitcoin Price Action: At the time of writing Bitcoin was trading at $95,805.13, down by almost 2 per cent in the last seven days.
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