- Anthony Pompliano discussed the high anticipation on Wall Street for the potential approval of multiple Spot Bitcoin ETFs by the SEC.
- He warned of Bitcoin’s high volatility, advising investors to be cautious despite its potential, noting its significant price swings and past drawdowns despite overall growth.
- Despite recent reports, Pomp believes the market will recover, citing Bitcoin’s resilience demonstrated by its recovery after China’s 2021 mining ban.
- He acknowledged his past prediction error about Bitcoin reaching $100,000, also cautioning against expecting a rapid surge to $1 million.
Wall Street Getting in On Anticipation
Entrepreneur and investor Anthony Pompliano was live on CNBC Squawk to talk about the much-anticipated Spot Bitcoin ETF approvals in the US and the volatility of Bitcoin. As the January 10 deadline approaches, a day that many believe will see the US Securities and Exchange Commission (SEC) approve a whole lot of Spot ETF applications at once, the hosts pointed to a never seen anticipation – and Pompliano agreed.
Wall Street is getting invited in anticipation of the greatest show on earth. Bitcoin has been the best performing asset for the last 15 years and Wall Street has basically been boxed out of it. They haven’t had access to this asset.
Anthony PomplianoInvestor Beware: Volatility Incoming
However, Pomp cautioned that the high volatility of Bitcoin means that investors should approach the asset differently than others. Just because BTC is held in an ETF doesn’t make it a safe bet and something that brings in immediate rewards. While Pompliano believes in the long-term prospects of Bitcoin he warns of the price swings.
I mean, this thing is on a risk return basis, it’s by far the most attractive asset in all financial markets, but it comes with tons and tons of volatility. And so, if you go back to 2017, it was $1000. That’s 45X since 2017, but along the way we’ve had two 80% drawdowns.
Anthony PomplianoNot long ago, crypto financial services platform Matrixport had predicted that the SEC may altogether delay the ETF applications, based on no more than the past hostility of the watchdog and its ‘regulation by enforcement’ approach. Immediately after the report was released the market dipped several percent. While some have made the report responsible, Pomp said that either way, he believes the market will respond with a dip but quickly recover from it.
Pompliano cited the Chinese ban on mining in 2021 as a good example of the resilience of Bitcoin.
China had over 60% of all mining inside of their borders – they completely banned mining and kicked them all out. 50% of hash rate went offline. By the end of 2021, mining hash rate was back to an all-time high. This thing is just resilient, it’s anti fragile and it continues to just do what it was designed to do.
Anthony PomplianoPomp Says Don’t Expect BTC To Reach $1 Million By Tomorrow
Questioned by co-host Michael Santoli about whether the risk-reward rate for Bitcoin was a good investment, recalling Pompliano’s prediction 2.5 years ago that Bitcoin would reach USD $100,000—a milestone it never achieved—the entrepreneur attributed this to the asset’s volatility and highlighted the upcoming Bitcoin halving and expectations of quantitative easing.
I was off by a little bit, right. But in terms of these directional moves, again it goes back to volatility here. Remember we aren’t just talking about an ETF either. We also have the halving coming up at the beginning of Q2 and we’ve got to return back to lose monetary policy. And so, I think that we’re going to see a pretty significant move in Bitcoin, just don’t expect it to go from $45,000 to $1,000,000 tomorrow.
Anthony Pompliano
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