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Although Bitcoin tested $68,000 on March 21, the cryptocurrency market seems to be in a whirlwind as Bitcoin continues to decline. The king coin fell by nearly 7% last week, trading at $63,974 at the time of writing.
However, investors remain highly optimistic about the asset's future. On March 22, Anthony Pompliano, the founder of Pomp Investments, spoke to Yahoo Finance at the inaugural Bitcoin Investors Day in New York. The executive shared his insights into the resilience of BTC.
"Bitcoin is obviously one of the best-performing assets. It's now a trillion-dollar asset and has penetrated the traditional financial world," Pompliano said.
Will Bitcoin rise?
Pompliano emphasized that the simple nature of Bitcoin contributes significantly to its value. He explained that BTC allows investors to invest in assets that don't depreciate while increasing their purchasing power.
This simplicity has permeated Wall Street, with individuals and institutions seeing BTC as a viable investment option. But what does this mean for the price? The executive commented:
"Now, is it going to go up in the short term, medium term, long term? How much is it going to go up? When? All these different factors will impact how much you want to allocate. How do you put it in your portfolio? Are you trading it, or are you just buying and holding? But at the end of the day, well, if there's more demand than supply, the price is going to go up."
He believes that this economic principle supports the growing interest in Bitcoin, which in turn leads to an optimistic future amidst limited supply.
The 2024 Bitcoin halving is different
Bitcoin's recent behavior has been surprising. Um, the question is: What's different about this halving? Pompliano explained,
"We've broken a lot of the rules that people have previously relied upon in Bitcoin... We've never hit all-time highs before a Bitcoin halving. And so, I think it means that we're in uncharted territory."
The executive pointed out that HODLers may view this cycle optimistically, expecting prices to skyrocket further. However, there is also a degree of unpredictability that could lead to vastly different outcomes. |
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Post time 3-4-2024 00:04:36
