Anthony Pompliano, CEO of Professional Capital Management, thinks Bitcoin is about to make a significant jump. He recently told CNBC that Bitcoin is the “greatest show on Wall Street” and explained why he believes it’s headed for new highs.
Three Reasons for Bitcoin’s Rise
Pompliano pointed to three key factors driving Bitcoin’s upward momentum:
-
Massive ETF Inflows: A huge amount of money is flowing into Bitcoin exchange-traded funds (ETFs). Last week alone saw $1.2 billion invested, and ETFs now hold over $140 billion in Bitcoin, with BlackRock’s fund alone nearing $90 billion. This shows significant institutional interest.
-
Options Expiration: The expiration of options contracts at the end of the second quarter removed downward pressure on Bitcoin’s price, allowing it to rebound. He used the analogy of a beach ball being released from underwater.
-
Short Sellers Squeezed: Many investors were betting against Bitcoin (short selling). As the price rose, these bets were wiped out, further fueling the price increase and pushing Bitcoin into a “price discovery phase.” This refers to a period where the market is figuring out the true value of the asset.
Price Discovery and the Next Big Move
Bitcoin recently broke through its previous all-time high of $110,000. While Pompliano didn’t give a specific price prediction (like $140,000), he’s confident that a “big move” is coming because Bitcoin is in this price discovery phase. This means the market is still figuring out its true value, and significant price changes are likely.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Do your own research before investing in cryptocurrencies. Investing in crypto is risky, and you could lose money./p>