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<\/p>\nAnthony Pompliano, the founder of Pomp Investments, joined CNBC\u2019s \u201cSquawk Box\u201d on 6 December 2023 to discuss the recent rally in Bitcoin, which has seen its prices soar above $43,000.<\/p>\n
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Pompliano described Bitcoin as a \u201cfree market asset,\u201d emphasizing that markets are forward-looking. He attributed the rally to investors allocating to Bitcoin in anticipation of future value increases. Key factors driving this include the potential for a Bitcoin ETF and the fact that 70% of Bitcoin\u2019s circulating supply hasn\u2019t moved in a year, indicating strong holding sentiment despite the asset\u2019s significant appreciation.
Pompliano highlighted that the 70% of Bitcoin that hasn\u2019t moved represents an all-time high, suggesting a reflexive feedback loop where limited selling and increasing prices encourage even less selling and higher prices. He also noted that both existing Bitcoin holders and new investors are contributing to the buying activity.<\/p>\n
Discussing the broader market outlook, Pompliano pointed to the Federal Reserve\u2019s potential policy changes as a significant influence. He mentioned that markets are pricing in a high likelihood of interest rate cuts in 2024, which is being factored into Bitcoin\u2019s price. He believes this anticipation aligns with the broader expectation that central banks will need to print money to finance debt, making assets like Bitcoin more attractive.<\/p>\n
Global Ownership and Hash Rate Distribution<\/p>\n
When asked about the global distribution of Bitcoin ownership, Pompliano differentiated between Bitcoin and its hash rate, noting that about 35% of the hash rate is in the United States. He acknowledged the difficulty in pinpointing ownership geographically due to the anonymity of wallets but suggested that the U.S. and Asia are significant players in capital flows within the Bitcoin market.<\/p>\n
Pompliano discussed Bitcoin\u2019s potential to match or exceed gold\u2019s market value, suggesting that if Bitcoin simply matches gold, it could reach a valuation of $500,000. He also touched on the possibility of Bitcoin becoming part of the payment system, which could significantly enhance its value.<\/p>\n
The interview also delved into the philosophical aspects of Bitcoin\u2019s value. Pompliano argued that traditional finance views, such as intrinsic value, are being challenged by Bitcoin\u2019s rise. He suggested that Bitcoin represents a new worldview, where the perceived value can vary significantly among individuals.<\/p>\n
https:\/\/youtube.com\/watch?v=8F5-OFtCeng%3Ffeature%3Doembed<\/p>\n