Long-time crypto bull Anthony Pompliano is predicting Bitcoin (BTC) will soar over the coming months due to one main factor.
In a new interview on CNBC Squawk Box, the founder of venture capital firm Pomp Investments says that Bitcoin may continue in an uptrend since the Fed has started to cut rates, which increases global liquidity.
Pomp says Bitcoin usually rises in tandem with liquidity based on historical data, and he references a new study issued by macro expert Lyn Alden showing the correlation between the two.
“83% of the time Bitcoin moves with global liquidity. It’s more than S&P or any other asset. And so if you look at not just the interest rate cuts, now M2, [global] money supply, is expanding, and also we have cuts going on in China and elsewhere, and so I think that Bitcoin ends up being a big winner whenever we get kind of cheap money flooding into the system.
And it feels like we just went through this big regime change. We were tightening. Everyone was trying to kind of drain liquidity from the system. Now we’re going to go the other way. And so Bitcoin should be a big winner here for the next couple months.”
He also says that since the Fed cut rates by 50 basis points last week, Bitcoin is outperforming other assets.
“If we look at that Fed interest rate cut, Bitcoin is the best performing asset so far. Gold and oil futures are kind of second.”
Bitcoin is trading for $65,368 at time of writing, up 2.8% in the last 24 hours.
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