Bitcoin (BTC) has bounced to $5,495 at time of writing, after dropping to as low as $3,850 and printing its heaviest loss in 24 hours since 2013. While the top currency managed to climb as high as $5,635 in today’s trading session, the spiking volatility is keeping traders rattled.
In spite of the historic losses and wild swings, Morgan Creek co-founder Anthony Pompliano remains upbeat on the cryptocurrency’s future, revealing how he bought the dip.
“Basically, what you guys have to understand is that there’s incredible pressure in the Bitcoin market but nothing about the network changed. It’s completely stable. It’s exactly how it was, and there’s been a very big price discount.
Of course, we’re bullish. As I said earlier this week, I bought more Bitcoin. We bought more Bitcoin at Morgan Creek. We definitely think that there is the same exact investment thesis that’s laid out.”
Pompliano says he’s confident that recent developments on the macro stage are rocket fuel for the king cryptocurrency.
“The more that we see the Bitcoin price and other assets drawing down, the more the Fed and the others are going to step in, create monetary stimulus.
When they create that monetary stimulus, because we’re addicted to it, all of the sudden, you’re going to see investors switch. They’re going to go from fear and uncertainty to ‘Holy sh*t, here comes massive monetary stimulus, possible high-levels of inflation, etc. I need to get out of the currency. I need to find a hedge. I need to find sound money principles or properties.’ And so they’re going to rush to gold and Bitcoin. They did this in 2008 and they’re going to do it again here.”
According to Pompliano, Bitcoin has a distinct advantage over gold because of the halving.
“Now, the difference between gold and Bitcoin is that gold supply is going to remain constant and the income supply is going to remain constant. The difference is that Bitcoin is going to have the halving occur in the next 60 days, give or take.
So everyone’s rushing to gold but all of a sudden 50% of the gold miners are shutting down, just saying, ‘Nope, we’re not going to produce any more gold.’ So obviously, the gold that is being produced becomes more valuable.”
Pompliano says several factors can catalyze a Bitcoin surge around the halving.
“I think that, as I’ve been saying for months and months now, there is complete rocket fuel for Bitcoin… You’re going to see the rate cuts, you’re going to see quantitative easing, and then you’re going to see the Bitcoin halving. It’s all going to happen around the same time. And, I think that Bitcoin is going to become incredibly attractive to a lot of people very quickly.”
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