Bitcoin has reached new all-time highs, trading just shy of $90,000 yesterday after breaching $88,000 the day prior. This meteoric rise has caught many by surprise, but Pina Pompano saw it coming.
"I told you so!" exclaimed Pompano. "I talked about how the halving occurred earlier this year, and for about 6 months we go sideways, and then this thing wakes up and up we go. And guess what, that's exactly what happened."
Pompano's prediction was based on the historical market cycles of Bitcoin. He noted that it typically takes about 6 months for the supply shock of the halving to work its way out, and then demand starts to increase towards the end of the year. This overlay with easing monetary policy has fueled Bitcoin's surge.
What's most fascinating to Pompano is the sheer speed of Bitcoin's appreciation. He looked back at 2020 and found that Bitcoin went from $15,000 in early November to $30,000 by the end of the year - a doubling in just two months. Extrapolating the current pace, Pompano believes Bitcoin could potentially double again by the end of 2022.
Bitcoin's Message to Policymakers
However, Pompano believes Bitcoin's skyrocketing price is sending a deeper message that no one is listening to - a warning about government overspending.
"Bitcoin is telling us, 'Pay attention, the politicians are destroying the future,'" said Pompano. "In the last 90 days, the national debt has exploded by $850 billion. Bitcoin is up 44% in that same time period. Bitcoin is telling on the politicians."
Pompano argues that the election of Donald Trump, known for his pro-business and pro-investor stance, has fueled this Bitcoin rally. Investors feel safer allocating capital with someone in the White House who is seen as making the stock market go up.
Regulatory Tailwinds for Bitcoin
The positive regulatory environment has also been a boon for Bitcoin, according to Matt Hogan of Bitwise. Hogan says the shift from bureaucrats to market participants running regulatory bodies has created tailwinds for the crypto market.
Pompano believes the incoming administration will be serious about slashing government spending and protecting the right of Americans to own and self-custody Bitcoin. He is hopeful they will establish a Bitcoin strategic reserve, where the government holds Bitcoin on its balance sheet as a store of wealth.
Pompano also discussed the impact of Elon Musk, who spent at least $130 million to help get Trump elected. This investment has paid off handsomely, with Musk's net worth increasing by $70 billion since Trump's election due to the surge in Tesla's stock price.
Pompano argues that Musk's involvement in the political process was driven by an existential threat he perceived to the country from the "woke agenda" and lack of free speech. Musk's willingness to participate in politics has inspired many young people who see him as a role model.
Pompano believes Musk may actually be underpaid given the immense value he has created, and that his $70 billion increase in net worth is not enough. He suggests Musk could be worth $500 billion if properly compensated.
Pompano is hopeful that the incoming administration's focus on entrepreneurs running the government will lead to more efficient and less wasteful policies. He believes they will be serious about slashing government spending and protecting the rights of Americans, including their ability to own and self-custody Bitcoin.
As for the future leadership of regulatory bodies like the SEC, Pompano believes Gary Gensler's reputation will improve over time, similar to how George W. Bush's reputation has evolved. He suggests potential candidates like Dan Gallagher, Paul Atkins, or even "crypto dad" Chris Giancarlo could take over the SEC.
Ultimately, Pompano believes the key is having the right people with the right process in place to regulate the markets effectively. He is optimistic that the incoming administration will make strides in this direction.
Part 1/5:
Bitcoin Soars to New All-Time Highs
The Bitcoin Boom: Insights and Predictions
Bitcoin has reached new all-time highs, trading just shy of $90,000 yesterday after breaching $88,000 the day prior. This meteoric rise has caught many by surprise, but Pina Pompano saw it coming.
"I told you so!" exclaimed Pompano. "I talked about how the halving occurred earlier this year, and for about 6 months we go sideways, and then this thing wakes up and up we go. And guess what, that's exactly what happened."
Pompano's prediction was based on the historical market cycles of Bitcoin. He noted that it typically takes about 6 months for the supply shock of the halving to work its way out, and then demand starts to increase towards the end of the year. This overlay with easing monetary policy has fueled Bitcoin's surge.
[...]
Part 2/5:
What's most fascinating to Pompano is the sheer speed of Bitcoin's appreciation. He looked back at 2020 and found that Bitcoin went from $15,000 in early November to $30,000 by the end of the year - a doubling in just two months. Extrapolating the current pace, Pompano believes Bitcoin could potentially double again by the end of 2022.
Bitcoin's Message to Policymakers
However, Pompano believes Bitcoin's skyrocketing price is sending a deeper message that no one is listening to - a warning about government overspending.
"Bitcoin is telling us, 'Pay attention, the politicians are destroying the future,'" said Pompano. "In the last 90 days, the national debt has exploded by $850 billion. Bitcoin is up 44% in that same time period. Bitcoin is telling on the politicians."
[...]
Part 3/5:
Pompano argues that the election of Donald Trump, known for his pro-business and pro-investor stance, has fueled this Bitcoin rally. Investors feel safer allocating capital with someone in the White House who is seen as making the stock market go up.
Regulatory Tailwinds for Bitcoin
The positive regulatory environment has also been a boon for Bitcoin, according to Matt Hogan of Bitwise. Hogan says the shift from bureaucrats to market participants running regulatory bodies has created tailwinds for the crypto market.
Pompano believes the incoming administration will be serious about slashing government spending and protecting the right of Americans to own and self-custody Bitcoin. He is hopeful they will establish a Bitcoin strategic reserve, where the government holds Bitcoin on its balance sheet as a store of wealth.
Elon Musk's Crypto Influence
[...]
Part 4/5:
Pompano also discussed the impact of Elon Musk, who spent at least $130 million to help get Trump elected. This investment has paid off handsomely, with Musk's net worth increasing by $70 billion since Trump's election due to the surge in Tesla's stock price.
Pompano argues that Musk's involvement in the political process was driven by an existential threat he perceived to the country from the "woke agenda" and lack of free speech. Musk's willingness to participate in politics has inspired many young people who see him as a role model.
Pompano believes Musk may actually be underpaid given the immense value he has created, and that his $70 billion increase in net worth is not enough. He suggests Musk could be worth $500 billion if properly compensated.
The Future of Government and Regulation
[...]
Part 5/5:
Pompano is hopeful that the incoming administration's focus on entrepreneurs running the government will lead to more efficient and less wasteful policies. He believes they will be serious about slashing government spending and protecting the rights of Americans, including their ability to own and self-custody Bitcoin.
As for the future leadership of regulatory bodies like the SEC, Pompano believes Gary Gensler's reputation will improve over time, similar to how George W. Bush's reputation has evolved. He suggests potential candidates like Dan Gallagher, Paul Atkins, or even "crypto dad" Chris Giancarlo could take over the SEC.
Ultimately, Pompano believes the key is having the right people with the right process in place to regulate the markets effectively. He is optimistic that the incoming administration will make strides in this direction.