- Despite the recent dips, investors remain optimistic about Bitcoin.
- Exec believes that supply shocks could lead to price increases.
The crypto market, like Bitcoin, seems to be in a whirlwind [BTC] continues to fall despite testing $68,000 on March 21. The king coin fell by almost 7% last week, causing it to hit the market $63,974 at the time of writing.
However, investors remain highly optimistic about the future of the asset. On March 22, Anthony Pompliano, founder of Pomp Investments, spoke to Yahoo Finance during the first Bitcoin Investor Day in NYC. The director shared his insights on BTC’s resilience, noting:
“Bitcoin is clearly one of the best performing assets. It is now a trillion-dollar asset, and it has now infiltrated the traditional financial world.”
Will Bitcoin Rise?
Pompliano emphasized that Bitcoin’s simple nature has contributed significantly to its value. He explained that BTC allows investors to invest in assets that are not devalued while increasing their purchasing power.
This simplicity has made its way to Wall Street, where individuals and institutions see BTC as a viable investment option. But how does that translate on the price front? The director noted:
“Is it going to rise now in the short term, the medium term, the long term? How many? When? All these different things relate to how much you want to allocate. How do you place it in a portfolio? Do you trade, or just buy and hold? But in the end it’s just: OK, if demand exceeds supply, the price will go up.”
He believes this economic principle underpins the increasing interest in Bitcoin. This in turn leads to a bullish future against the backdrop of limited supply.
Bitcoin’s halving in 2024 is different
Bitcoin’s recent behavior is nothing short of surprising. Ergo the question: what is different about this halving? Pompliano explained,
“We broke many of the rules that people previously relied on with Bitcoin. We had also never hit an all-time high before Bitcoin’s halving. So I guess it just means we’re in uncharted territory.”
The executive pointed out that HODLers are likely to view this cycle optimistically in anticipation of further price increases. Yet there is also a degree of unpredictability that can lead to very different outcomes.
