Bitcoin’s Milestone Could Spark Supply Shock, Warns Pompliano

Anthony Pompliano, the visionary behind Pomp Investments, is currently advocating a highly optimistic outlook on Bitcoin (BTC).

During a CNBC segment, Pompliano conveyed his perspective, arguing that given the blend of numerous catalysts and historical patterns, it's challenging to envision a scenario where Bitcoin does not experience further growth in value. 

”We just hit a really important milestone before the halving – we just had the highest weekly, monthly and quarterly close for Bitcoin. And so the last four times that’s happened, Bitcoin has appreciated at least 300% through the rest of the bull market. It doesn’t mean it’s going to happen again.

But to have that happen before the halving, it’s kind of like the demand shock happened and now we’re going to have this supply shock.”

Currently, Bitcoin's value is noted at $65,744, which marks an impressive ascent of approximately 66% from its January nadir, which was roughly $39,500.

Pompliano further elaborates that the current economic unrest and a prevailing sense of despair may be significant factors propelling the valuation of Bitcoin and similar digital currencies.

He poses a rhetorical question about the absence of hope and the actions it prompts individuals to take, suggesting:

“The dollar has lost 25% of its purchasing power in four years. We have $1.1 trillion in credit card debt. We have 43 million Americans who have federal student debt, the average balance is $37,000. People have lost hope, they do not have hope. How are you supposed to live in a country where it is cheaper to rent than to buy a home in 50 major metros?

You don’t have hope and so what do you do?

I think that if you go and buy a lottery ticket, it’s 300 million to one odds. I think there are people right now that are saying ‘You know what? A meme coin has better odds than a lottery ticket. I think there’s a lot of people that say Bitcoin is actually the safest [bet].”

Rahul is a skilled freelance writer specializing in cryptocurrency and an expert in cryptocurrencies, blockchain technology, NFTs, and Web3.