According to Anthony Pompliano, the founder and partner of Pomp Investments, Bitcoin’s solid monetary principles will make it surpass gold in value, especially after the upcoming supply halving. During an interview on Fox Business, Pompliano expressed his optimistic view on the pioneer cryptocurrency, stating that Bitcoin has outperformed all other assets in the four years following the last halving. He pointed out that Bitcoin’s price has risen from $8,000 to $64,000 in that time, highlighting its exceptional performance.
Pompliano clarified that Bitcoin wasn’t the only asset to experience a decline during the recent crypto market drawdown that occurred on April 12. Gold and other financial markets also dropped due to escalating geopolitical tensions in the Middle East. Since the attack drones and missiles launched by Iran against Israel, Bitcoin has dropped by over 9%, while Ether has seen an 8% decline. Data from TradingView reveals that the S&P 500, the Nasdaq 100, and the gold index (XAU) have also decreased by 1.83%, 3.5%, and 5% respectively, during the same period.
Pompliano explained that during times of political uncertainty, investors tend to sell any liquid assets for U.S. dollars. This resulted in the selling of Bitcoin, as well as gold, stocks, and bonds. However, Pompliano believes that Bitcoin will recover and lead the way in the market once the dust settles. He emphasized that both Bitcoin and gold possess sound money principles as they exist outside the traditional financial system and cannot be created indefinitely. While gold offers more stability and downside protection, Bitcoin is the superior option for those looking to increase their purchasing power.
With the upcoming Bitcoin halving just days away, Pompliano anticipates a significant impact on the market dynamics. He acknowledges the possibility of a “sell-the-news phenomenon” but advises investors to focus on long-term gains and continue buying Bitcoin. Pompliano also reiterated his belief in dollar-cost averaging Bitcoin, which involves regularly investing a fixed dollar amount in BTC. He stated that those who adopt this strategy over an extended period will fare well.
Pompliano disclosed that Bitcoin accounts for more than 50% of his portfolio. However, it is important to note that this article does not provide investment advice or recommendations. Investors should conduct their own research and exercise caution when making investment decisions.