Anthony Pompliano: Bitcoin is definitely in a new bull cycle

Anthony Pompliano Foresees a New Bull Market for Bitcoin

Anthony Pompliano, the founder of Morgan Creek Digital, has expressed strong confidence in the emergence of a new bullish cycle for Bitcoin. His insights, based on historical market patterns and current financial trends, suggest a promising phase of growth for the first cryptocurrency.

Understanding the Four-Year Bitcoin Cycle

Pompliano, in his CNBC interview, highlighted that Bitcoin tends to follow a four-year market cycle, closely associated with its halving events. This cycle typically encompasses a 2.5 to 3-year span from the lowest price point in the current cycle to a new record high, followed by a correction phase lasting about a year to a year and a half. Historically, these cycles have seen immense growth, often in the hundreds of percent, and corrections reaching up to 80%.

The Current Bull Market Trajectory

The recent movements in Bitcoin's price, including a slight pullback from $44,000 and a resurgence to the $43,000 mark, are seen by Pompliano as confirmations of the start of a new bullish phase. His analysis suggests that the market is now transitioning into another growth period for Bitcoin.

Key Factors Influencing Bitcoin's Rise

Two major expectations are driving Bitcoin's rise above $40,000: the potential approval of spot cryptocurrency ETFs in the United States and anticipated changes in the monetary policy by the US Federal Reserve. Pompliano emphasizes that the market is closely watching the SEC's decision on spot ETFs, with many investors buying bitcoins in anticipation of a positive outcome. Additionally, the expected easing of monetary policy is also seen as a favorable factor for risky assets like Bitcoin.

Impact of SEC's Decision on Spot ETFs

Pompliano has previously stated that if the SEC approves spot ETFs, it is likely to greenlight all pending applications, of which there are about a dozen. This decision could be a significant catalyst for Bitcoin price, as it would greatly enhance its accessibility and legitimacy among investors.

Conclusion: A Promising Horizon for Bitcoin

Anthony Pompliano's outlook on Bitcoin's market trajectory paints a bullish picture, underpinned by historical trends and current market expectations. With the potential approval of spot ETFs and changes in monetary policy, the stage is set for what could be a significant growth period for Bitcoin, aligning with the four-year cycle pattern that has historically characterized its market movements.