Anthony Pompliano, CEO of Professional Capital Management, attributes the cryptocurrency market growth to broader global and sector-focused factors but dismisses the notion that the U.S. presidential election plays a significant role.
What Happened: In an appearance on CNBC Squawk Box on Thursday, Pompliano linked this growth to the rising adoption of stablecoins.
Pompliano, who will be a headline speaker at Benzinga’s Future of Digital Assets event on Nov. 19, noted that market conditions are favoring assets like Bitcoin BTC/USD, which has seen a 60% rise this year. Contrary to popular belief, he doesn't associate Bitcoin’s surge with the election or any candidate.
Pompliano attributes Bitcoin’s rise to several factors:
- The post-halving supply shock
- Lower interest rates from central banks
- An expanding M2 money supply
- Bullish investor sentiment
He predicts that Bitcoin's value will continue to climb throughout the year and dismissed the concept of “Uptober,” noting that September was unexpectedly strong, countering traditional expectations of a market dip.
Pompliano described Bitcoin as "the simplest story in finance," though he acknowledges it’s challenging for traditional financial players to fully grasp.
He also highlighted the increasing use of stablecoins, predicting they will drive a significant bull market for the U.S. dollar. According to Pompliano, Bitcoin is being used as a digital savings account, while stablecoins serve as a checking account for everyday expenses, indicating a shift toward a multi-currency system.
Why It Matters: Pompliano emphasized that Bitcoin is not a threat to the U.S. dollar. Instead, he sees stablecoins as a major opportunity for the dollar in the digital currency space. This suggests that the rise of cryptocurrency ownership and stablecoin use could bolster the U.S. dollar's position in the global digital economy.
He also forecasted that Bitcoin’s momentum would continue through the year, with a possible correction followed by a shift to Ethereum ETH/USD and other altcoins.
Pompliano also cited a recent report from Tether’s Head of Economics, revealing that over 330 million people are using Tether on-chain, with two-thirds of crypto users in emerging markets converting stablecoins into their local fiat currencies. Notably, 40% of these users have purchased goods or services with stablecoins.
What’s Next: Anthony Pompliano will be one of the headline speakers at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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