Pomp Investments founder Anthony Pompliano says the Bitcoin (BTC) bull market is now underway as the crypto king regains the $43.00 level.
In a new interview with CNBC Television, Pompliano say that Bitcoin follows a historical four-year price pattern associated with halving events where miners’ rewards are halved.
“Bitcoin’s bull market has begun. And if you look at these market cycles, historically they’ve been kind of four-year market cycles between these Bitcoin halvings. And what will end up happening is you’ll have about two and a half to three years between the bottom of the last bear market and the top of the next bull market. And then you get a market correction of about a year and a half.
And historically that has gone up by hundreds of percent and then you get about an 80% take-up…
The bull market has begun. And the question on everyone’s mind now is how high Bitcoin will go in this bull market.”
Pompliano says the recent massive Bitcoin rally above $40,000 is likely due to two main factors: a possible approval in January of Bitcoin Exchange-Traded Funds (ETFs) in the spot market and the expectation that the Federal Reserve will raise interest rates as soon as possible will decrease. 2024.
“There is speculation about the Bitcoin ETF. As we get closer and closer to these early January dates, I think people are just saying, look, it’s more likely to be approved. And if it is approved, they think the price will increase, so they want to own it before approval – that goes without saying.
Then when you look at things in the macro environment, the markets are forward-looking. And so what people expect is that someone could say to themselves, okay, if we had had this kind of quantitative tightening, interest rates would have risen at the fastest rate in history, we would have sold assets off the Federal Reserve’s balance sheet – that will change at some point.
If they continue to keep the economy tight, they will push us into a recession. And so if there is a return to quantitative easing, the thought process is that many assets, including Bitcoin, will rise very quickly. And so you don’t wait for them to return to easy monetary policy and then buy the assets. You want to buy it right before they come back.”
Bitcoin is trading at $43,043 at the time of writing, up 4.2% in the past 24 hours.
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