Bitcoin may be struggling right now, but Anthony Pompliano says that could actually be part of a much bigger cycle.
Speaking in a CNBC Squawk Box interview, Pompliano explained that many investors are currently chasing AI-related stocks because they are delivering strong momentum and fresh all-time highs, while Bitcoin has fallen out of favor in comparison.
According to him, markets often work in cycles where the assets people ignore eventually become the biggest winners later on.
“What I think people have to realize is that while AI stocks are flying and everyone is chasing momentum and it’s hitting all-time highs, usually the thing you want to be buying is the thing that’s out of favor that’s going to come back into favor,” Pompliano said.
Bitcoin Still Outperforming Over the Long Run
Pompliano pushed back against the growing narrative that Bitcoin has become a “dog” asset by pointing to longer-term performance data.
He explained that over one-year, two-year, five-year, and even ten-year periods, both Bitcoin and gold have consistently outperformed the S&P 500 on a compound annual growth basis.
While gold is usually viewed as a safer and less volatile asset compared to Bitcoin, Pompliano argued that both assets have quietly delivered stronger long-term returns than many traditional equities.
However, he admitted that short-term underperformance has frustrated many investors, especially after Bitcoin struggled to match the explosive moves seen in AI stocks over the last two years.
Money Printing Could Become Bitcoin’s Catalyst
Pompliano also connected Bitcoin’s future performance to broader macroeconomic conditions, especially continued money printing by the U.S. government.
He argued that as long as governments continue expanding liquidity and increasing debt, Bitcoin will likely regain investor attention again in the future.
“The big question is, is the U.S. Government going to stop printing money?” Pompliano asked. “If they do not stop printing money, which I don’t think they’re going to stop, that means Bitcoin at some point in the future is going to be back.”
He added that while Bitcoin may currently be out of favor compared to high-flying AI stocks, market sentiment can shift quickly once investors begin looking for alternative stores of value again.
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