The Rise of Bitcoin: Speculations on Its Ascendancy to $140,000

By: Alex Freidmen

Bitcoin Hits New All-time Highs

Bitcoin BTC/USD witnessed a surge, briefly crossing the $69,000 mark on Tuesday. Renowned investor Anthony Pompliano from Pomp Investments expresses bullish sentiments towards Bitcoin.

Unlocking Bitcoin’s Potential

Understanding the Scenario: Bitcoin has been recovering steadily to approach the peaks it reached in November 2021. The digital currency reached new all-time highs on Tuesday before a temporary pullback.

The recent rally is largely credited to the increased demand following the approval of spot Bitcoin ETFs in January. With all eyes on the upcoming halving event in April, many anticipate it to be the next potential trigger for Bitcoin. Pompliano believes that Bitcoin’s value could escalate rapidly in the upcoming weeks.

Recalling historical data, Pompliano mentioned that whenever Bitcoin broke previous record highs, it doubled in 18 days or less in three out of four instances.

The Accelerating Demand

The approval of ETFs has significantly driven up the demand for Bitcoin, surpassing the available supply. Blackrock alone poured $1 billion into its fund in a single day, amassing over $11 billion in its Bitcoin ETF, Pompliano reported. Several other ETFs are witnessing substantial demand, resulting in massive inflows for Bitcoin.

Envisioning Bitcoin’s Trajectory

Breaking through all-time highs initiates a price discovery phase, where the asset’s true value is determined globally, as explained by Pompliano.

Considering the upcoming halving event that will reduce Bitcoin supply from 900 to 450 coins per day, Pompliano emphasized that it is challenging to argue against Bitcoin’s potential for significant growth at a faster pace than anticipated.

Despite CNBC’s Joe Kernen suggesting listeners might contemplate mortgaging their houses due to Pompliano’s claim of Bitcoin reaching $140,000 in just over two weeks, Pompliano advised against such risky moves. He recommended a modest portfolio exposure to crypto of 1% to 5%.

See also  HSBC Aims to Dominate UK Wealth Market, Boost Advisor Team HSBC Aims to Dominate UK Wealth Market, Boost Advisor Team

Embracing the Possibilities

Highlighting Bitcoin’s recent performance, Pompliano noted its 20% weekly increase, 60% monthly surge, and 200% annual growth. He refrained from guaranteeing a rise to $140,000 but cited historical data supporting the possibility of substantial future gains, especially with the halving event approaching.

For illustrative purposes, Bitcoin was trading at around $65,000 when the report was drafted.

Photo: Shutterstock.