The recent Bitcoin sell-off (Bitcoin) The market pushes up prices Key psychological support below 30,000 USD.
Although the decline of cryptocurrencies has prompted many analysts, including Vijay Nayyar of Luno Exchange with Jehan Chu of Kinetic CapitalIn order to predict further declines below $25,000, Anthony Pompliano offers a contrasting bullish outlook.
The founder of Morgan Creek Digital Assets compared the risky market with concerns about the rapidly spreading Delta variant of Covid-19. He pointed out that if the new coronavirus strain spreads on the scale of its alpha version, the government will generally launch a “more aggressive monetary stimulus” plan.
Pompliano wrote: “History is not necessarily an indicator of the future, but it is difficult to imagine that if there is a second wave of blockade, we will not get more aggressive monetary stimulus measures.”
“If this happens, we may see all assets continue to rise.”
With that said, Pompliano envisions that the path to more dollar liquidity will be divided into seven consecutive phases, as shown in the following snapshot:
Expected FOMO risk
Pompliano’s statement came as the Bitcoin market fell in sync with other markets Risk assets Monday was on a global scale.
For example, all three Wall Street indexes—the S&P 500, the Nasdaq Composite Index, and the Dow Jones Index—have their biggest declines in weeks. In addition, gold once fell to a low of US$1,795.12 per ounce, but recovered to US$1,812.145 per ounce at the close.
At the same time, U.S. government bonds have risen alongside the U.S. dollar, indicating that investors are turning to safe-haven assets in the global market turmoil.
Behind the defeat, global media Report, More and more people worry about economic recovery. In detail, the Delta variant of Covid-19 has spread rapidly, rekindling the dialogue in multiple countries on whether the authorities should re-impose the lockdown and contain economic activities.
“Hope is [the Covid-19] The vaccine will provide us with the final result,” Mohammed Kazmi, Portfolio Manager of Union Bancaire Privée, Tell the financial times“Now investors are paying attention to the UK, and people are a little worried about reopening so aggressively while the number of cases is still so high.”
Kazmi added that the market is now moving away from the hope of a V-shaped recovery and is uncertain about the future of its economy.
related: As the price of Bitcoin drops by $30,000, the stock-to-flow model may fail
Pompliano’s comments also appeared when the Federal Reserve was considering raising near-zero loan interest rates by the end of 2023 to curb rising inflation.
In addition, several central bank officials also agreed Gradually reduce their aggressive $120B monthly asset purchase planAlthough Chairman Jerome Powell clarified that the Fed intends to implement quantitative easing before the US economy fully recovers.
James Wo, the founder and CEO of Digital Finance Group, a global blockchain and digital asset investment company, also pointed out that although the Bitcoin industry has encountered downward volatility in the current market cycle, it is fundamental to drive its and other market values higher overall. It will continue to be unaffected in 2020. He added:
“Any combination of narratives that makes digital assets reach this discounted price can be checked from the FUD list that will ultimately affect the entire market price.”
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