Entrepreneur, investor, and podcast host Anthony Pompliano, also known as Pomp, recently joined Fox Business’s Liz Claman on the ‘Claman Countdown’ to discuss recent developments in the crypto world. During the interview, Pompliano spoke about the recent events around a Spot Bitcoin ETF approval in the United States. Only last week, Grayscale obtained a court order requiring the Securities and Exchange Commission (SEC) to reconsider the conversion of its Bitcoin trust into an ETF.

Meanwhile BlackRock, Bitwise, Wisdom Tree, and others had their applications for Spot EFTs delayed by the SEC. Pompliano believes the SEC may approve both the conversion and the new applications all at once which would set off a race. He said: “Say GBTC, you can convert, BlackRock, Ark, the other filers, everyone gets to go, 123 go. Whoever gets the assets, gets the assets. Because part of what we’ve seen in prior ETF applications that have been approved, whoever gets out there first, they get the assets.”

All About Supply and Demand

This could certainly cause price disruption because Bitcoin is a highly illiquid asset. Pomp points out that 70% of Bitcoin in circulation is held by individuals with no intention of selling, or at least haven’t sold in the past 12 months. He compared the present situation with 2020, when Covid caused enormous money influx which coincided with the last Bitcoin halving. At that time, the markets rallied and Bitcoin and other crypto assets increased several hundred percent on the back of increased demand and the decreased Bitcoin supply.

Bitcoin halving happens about every four years, cutting the reward that Bitcoin miners receive in half. This is done to ensure there isn’t too much Bitcoin entering the market too quickly, maintaining its deflationary nature as time progresses. The next halving is expected in April 2024.

Pompliano expects a repeat of 2020, saying: “I think that we’re watching that exact same thing play out here. ETF application will be the demand shock. The supply shock is coming with the halving and we should go up hundreds of percent again.”

Host Liz Claman pointed out that some are speculating that the SEC may revoke Bitcoin Futures to make a case against Bitcoin and cryptocurrencies. While admitting this is possible, Pomp said: “I don’t think it’s likely, though. I do tend to think that there’s a lot of speculation on this stuff. I do believe we will get ETF applications approved by before the end of this year.”

ETFs Not Only Catalyst

But, according to Pompliano, those who solely focus on the ETF issue are missing the forest for the trees.  He points to a recent prediction in which brokers Bernstein estimated the stablecoin market would go to $3 trillion (AU$4.7 trillion) from currently just $125 billion (AU$196 billion).

Stablecoins are of course just digital Dollars or as Pomp calls them “Dollars on blockchain”, he said: “So, they’re predicting just dollars alone will go from 125 billion to 3 trillion. If that happens, Bitcoin and the rest of the cryptocurrency market will likely be 10 plus trillion dollars. We’re talking about a market that maybe is just over a trillion today.”

In the end, Investors should be aware though that Pompliano, with a substantial online following and a prominent presence in the crypto space, is no stranger to making bold predictions. He was one of many predicting Bitcoin to reach US$100,000 by the end of 2021. However, in the end, it fell short of those expectations, barely touching the US$64,900 (AU$ 89,000) mark in December 2021. At the time of writing Bitcoin trades for US$26,298 (AU $41,270) according to CoinMarketCap.

The post Pomp It Up: Anthony Pompliano Hints at Bitcoin Explosion in the Next Cycle Due to ETF, Demand and Halving appeared first on Crypto News Australia.

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Filed under: Bitcoin - @ September 8, 2023 5:23 am