Crypto analyst Anthony Pompliano, founder of Pomp Investments, remains optimistic about Bitcoin BTC/USD despite its recent drop below the $100,000 milestone.
What Happened: In a recent interview with FOX 5, Pompliano predicted that "2025 will continue to be a great year for Bitcoin."
Pompliano outlined two key factors driving Bitcoin's future growth. "One, you're going to continue to get printing of money both in the United States and globally. And then two is you have a Federal Reserve that is cutting interest rates," he said.
During the interview, he shared that the increasing M2 money supply and cheaper capital from lower interest rates are likely to fuel market gains.
Pompliano also discussed why Bitcoin's growth and market cap expansion have made it more attractive to institutional investors.
Also Read: This Analyst Says Bitcoin Could Reach $200K By End of 2025
"When Bitcoin was at $1,000, large capital pools viewed it as too small and risky," he explained. However, Bitcoin's rise to a $2 trillion market cap has changed perceptions. "Now all of a sudden everyone's like, ‘Wait a second, I can put money in it. It's derisked.'"
He noted that as Bitcoin's price climbs, more institutional capital is likely to flow into the asset. "As large pools of capital come in to buy a finite-supply asset, price should continue to go up," Pompliano said, emphasizing Bitcoin's limited supply as a key driver of its long-term value.
Despite its recent volatility, Pompliano's outlook underscores the growing institutional acceptance of Bitcoin and its potential to achieve greater heights as a premier digital asset.
At the time of writing Bitcoin was trading at $95,805.13, down by almost 2 per cent in the last seven days.
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