Morgan Creek Digital co-founder and Bitcoin bull Anthony Pompliano says potential interest rate cuts and quantitative easing from the European Central Bank (ECB) will be “rocket fuel” for the leading cryptocurrency.
In a new installment of his newsletter Off The Chain, Pompliano outlines why he believes expected rate cuts from the ECB will help make the benefits of Bitcoin obvious to investors.
“The actions of central banks aren’t the only thing that we should be paying attention to either — the timing is very important as well. The impact of monetary stimulus is normally not seen for 6-12 months after the initial actions are taken. Given that the rate cuts are likely to be initiated in September, the impact won’t be seen until February 2020 or later.
That means that the monetary stimulus impact will hit within 90 days of the 50% reduction in the Bitcoin monetary supply schedule. Think about that for a minute. We are going to see traditional assets being artificially pumped at the exact same time that the stock-to-flow ratio of Bitcoin becomes drastically more attractive. Incredible.”
ROCKET FUEL: They’re going to cut rates and print money right as we march towards the Bitcoin halving.
Buckle up. This will be wild 🚀 pic.twitter.com/QotDXKTJRj
— Pomp 🌪 (@APompliano) July 25, 2019
Pompliano says he’s not looking for a single financial event to trigger a sudden spike in the price of Bitcoin, but instead a gradual recognition of the strengths of Bitcoin’s limited supply.
“Regardless of the timing, Bitcoin’s value proposition is about to become painfully obvious to the world.”
You can check out the full newsletter from Pompliano here.