Anthony Pompliano, CEO of Professional Capital Management, attributes the growth of the crypto market to broader global and sector-focused factors, but the US presidential election rejects the idea that it plays an important role.
What happened: Appearing on CNBC Squawk Box on Thursday, Pompliano tied this growth to the increased adoption of stablecoins.
Pompliano, who will be the headline speaker at Benzinga’s “Future of Digital Assets” event on November 19, said market conditions favor assets like Bitcoin BTC/USD, which is up 60% this year. He pointed out that Contrary to popular belief, he does not link Bitcoin’s rise to elections or candidates.
Pompliano attributes Bitcoin’s rise to several factors.
Post-halving supply shock Central bank interest rate reduction Expansion of M2 money supply Bullish investor sentiment
He predicted that Bitcoin’s value would continue to rise throughout the year, rejecting the notion of an “uptober” after an unexpectedly strong September, contrary to conventional expectations of a market decline.
Pompliano described Bitcoin as “the simplest story in finance,” but acknowledged that it is difficult for traditional financial players to fully grasp.
He also highlighted the increasing use of stablecoins and predicted that they will drive a significant bull run in the US dollar. According to Pompliano, while Bitcoin is used as a digital savings account, stablecoins serve as checking accounts for everyday expenses, marking a shift towards a multi-currency system. .
Also read: Anthony Pompliano predicts stablecoin adoption will skyrocket due to Tesla’s automation technology: ‘People don’t want to use Bitcoin’
Why it matters: Pompliano stressed that Bitcoin is not a threat to the US dollar. Rather, he sees stablecoins as a huge opportunity for the dollar in the digital currency space. This suggests that increased ownership of cryptocurrencies and the use of stablecoins could strengthen the US dollar’s position in the global digital economy.
He also predicted that Bitcoin’s momentum will continue throughout the year, with the possibility of a continued correction and a shift to Ethereum ETH/USD and other altcoins.
Pompliano also cited a recent report by Tether’s head of economics, stating that more than 330 million people use Tether on-chain, and that two-thirds of emerging market cryptocurrency users are stable. It was revealed that the coins were being exchanged for local legal currency. 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 Future of Digital Assets event on November 19th.
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