Bitcoin continues to trend upward despite price volatility, says Anthony Pompliano

Bitcoin continues to trend upward despite price volatility, says Anthony Pompliano

it’s been a couple weeks now since bitcoin’s having and the price action of the cryptocurrency has been well volatile is maybe the word for more on that in the equity markets want to bring in Anthony Pompano he’s the founder of pomp Investments good morning to you good morning so the having happened uh it’s been volatile I mean we I don’t we could put the price up on the screen right now but there was a period of time what did what was the lowest it came down to at one point 57 57 uh it’s moved back but it hasn’t moved back obviously to the heights what do you make of what’s Happening Here Yeah I I think that the having uh price action is exactly what we should have expected historically it runs up about 19% in the month before and it only goes up about one 2% in the month after the having so we’re kind of seeing about that um last week I think that Bitcoin sold off because people are realizing wait maybe the US economy isn’t as good as we thought it was maybe we’re actually not going to get all of these rate Cuts if you look at prediction markets we’ve seen they were pricing in five rate Cuts now we’re down to one and so if we’re not going to get those rate Cuts is that bad for assets that trade you know in a risk environment and so when we see that though all of a sudden we’ve retraced the entire selloff we’re right back and one of the most interesting data points is that gbtc the world’s largest Bitcoin fund saw 78 straight days of outflows once the ETFs got approved on Friday it had the first day of inflows about 63 million and so that doesn’t mean that all of the selling is gone but for 78 straight days people were taking money out of that fund and on Friday they decided to start putting it back we see the price R what do you think that says about the overall scheme with with Bitcoin and more importantly the ETF world yeah so whenever you see the ETFs get approved right I think everyone was like oh these institutions are just waiting to pour capital in it takes time they’ve got to go to their investment committees they got to talk to their clients they’ve got to go through their processes and you know fortunately or unfor fortunately some of them are bureaucratic and it’s going to take some time and so now we’re starting to see these flows that are persistent that I think people are really excited about another data point that’s really important is that Bitcoin although it is volatile day-to-day the 200 day moving average just hit an all-time high just crossed over $50,000 for the first time and so over the long run Bitcoin continues to kind of trend upwards even though on a day-to-day basis that price is last week there was Black Rock was saying they’re starting to see some increased institutional interest uh in crypto in Bitcoin how how much is how many pension plans for example have Bitcoin now it’s like got to be single digits right I mean no it’s really not adopted widely by fiduciary types is is that coming I I think that you’ve got to expand the definition of like what exactly falls into that fiduciary bucket so raas definitely are buying this right if you go and you look at many of the large Wall Street firms they’re buying it you even have black rock Fidelity others putting non-bitcoin funds into the ETF no cpers I don’t know if they’re uh doing it yet but also I think that the Sovereign wealth funds they definitely are doing this if you go around the world you look at these Sovereign wealth funds they’re trying to get into mining they’re trying to get exposure to this asset um they’re going to play us out but real quick ethereum this lawsuit that effectively accuses the SEC of considering a security and then sort of B and switching everybody what do you think of that and what do you think longterm means the United States of America has an amazing court system and we’ve seen over and over again the SEC and multiple players go to court they argue it out sometimes the SEC wins sometimes they don’t I think the judges will figure it out that’s very political not giving us a side here I don’t know what the answer is I don’t think most people do

Anthony Pompliano, Pomp Investments founder, joins ‘Squawk Box’ to discuss bitcoin’s volatile run, impact of bitcoin’s halving on the recent price action,