Over The Next 18 Months, Prominent Crypto Voice Predicts The Perfect Storm For Bitcoin
Anthony Pompliano: Next 18 Months Will Be Pivotal For Bitcoin
- Morgan Creek’s Anthony Pompliano shares the ultra-bull case for Bitcoin
- The weekend effect
- Bitcoin provides an equal footing
Since entering the month of June, Bitcoin has been stuck below $8,000 mark, however, yesterday Bitcoin finally went above $8k for an extended period of time and touched $8,200 as well.
Currently, BTC/USD is trading at $8,110 with 24 hours gains of 1.50 percent while having a market cap of $144 billion.
Ultra-Bull Case For Bitcoin
In the near term, there is a possibility of making a retracement back to the $6ks, however, the next 1 and a half year are going to be interesting for the cryptocurrency as we move closer to bitcoin halving event in May 2020.
But that’s not all, Morgan Creek Digital co-founder Anthony “Pomp” Pompliano while speaking to Bloxlive TV stated that the next 18 months are going to be crucial for the leading cryptocurrency. During this period, we are going to see a plethora of developments plus global economic scenario that will contribute to Bitcoin’s role in the global financial system as well.
“Over the next 12 to 18 months, we are going to get a perfect storm for bitcoin. There are a number of events that are going to happen at the same time. Central banks will be forced into some interest rate cuts, maybe some QE. These events [will] ultimately drive Bitcoin into an ultra-bull case,” stated Pompliano.
We can already see monetary policymakers all across the world from the Federal Reserve to European Central Bank (ECB) to Bank of Japan (BOE) adopting dovish policies. Now, there are reports of rate cuts that in some countries goes as far as zero-interest-rate policy and quantitative easing.
The Weekend Effect
As we have reported constantly, market analysts are already calling out a warning that we are moving towards yet another financial crisis and the deflationary Bitcoin that is isn’t controlled by any country or printed out of existence is looking like an asset that rides this tumultuous wave.
We have already seen how the trade tension between the US and China played a role in driving Bitcoin prices higher to 12 months high.
About this economist and trader Alex Kruger has this to say, “Interest in BTC only coincided with the Trade War and Yuan since the 6K breakout. The Trade War was long underway by then, with various peak interest prior episodes. It's possible the BTC – Trade War narrative was driven by media and resulted in a self-fulfilling prophecy.”
Kruger further shared an alternative explanation for the correlated interest in Bitcoin and USD RMB (China’s currency Renminbi) which is the Weekend Effect.
During the weekends, the searches dropped with 18/23 times for Bitcoin and 22/23 times for USD RMB during 2019 that means,
“Series seemingly move together when bitcoin searches increase in level.”
This trade spat combined with dovish central bank policies and the historically bullish event of halving will have a positive impact on Bitcoin price.
Bitcoin Provides Equal Footing
In another event, an Iranian, Ziya Sadr, 25 spoke with Let’s Talk Bitcoin, a cryptocurrency podcast about the importance of Bitcoin in Iran.
“The thing about bitcoin is that we are on equal ground with the rest of the world and that is nice for a change,” said Sadr adding, “We’ve never been on equal ground. We’ve had inflation, we’ve been sanctioned by the whole world. With Bitcoin, we are on equal ground with the rest of the world and this is kind of new.”
Apart from this, Bitcoin can also put a dent in income inequality as analyzed by Pomp in his newsletter.
Apart from automation, decline of labor unions, globalization hypothesis, policy, drug use, politics, race, skill-biased technological change among factors that are blamed for unequal distribution of income, inflation is another factor that affects it and “those in power directly benefit from the existence of inflation.”
This is where decentralized digital currency comes into the picture that is a deflationary monetary system. As a matter of fact, Bitcoin removes inflation from the money system, negating the impact of inflation on income inequality.