Bitcoin (BTC) breached the $50K mark on Monday. The price not seen since December 2021 is now fueling renewed optimism in the future trajectory of the digital asset. For Pomp Investments founder Anthony Pompliano, the leading cryptocurrency by market cap could very well be on its way to reclaiming its past glory in November 2021 when it went to an all-time high of almost $70K.
The Wall Street Loves Bitcoin
After enduring much lashing from the powerhouses in Wall Street over the years, Bitcoin has finally won the favor of a lot of key players in the traditional finance (TradFi) sector. Now, it has become their favorite asset said Pompliano.
“Wall Street doesn’t just like Bitcoin. They love Bitcoin,” the Pomp Investments founder stated in an interview with CNBC.
The investor illustrated his point by looking at the historic achievements of BlackRock and Fidelity in their respective spot Bitcoin exchange-traded funds (ETFs) over their first 30 days of trading. During this span, the combined assets under management (AUM) of the financial heavyweights crossed the $3 billion threshold, which Pompliano noted was something never experienced before by more than 5,500 ETF launches throughout history.
It’s worth also noting that although the Bitwise and Ark Invest spot Bitcoin ETFs are far from the feat achieved by the industry leaders, their combined performance has displayed almost $1 billion inflows.
Massive Buying Pressure Observed in Spot BTC ETFs
The demand driven by spot Bitcoin ETFs is now overwhelming the Bitcoin supply. According to Pompliano, the present demand is already outpacing the daily production of BTC by 12.5 times. He attributed this scenario as the primer for the explosion of Bitcoin prices, and this could only be the beginning.
“The inflows from these funds are doing $500 million a day of net inflows, but there’s only 900 bitcoin coming into the daily incoming supply,” Pompliano explained.
What’s more, the investor revealed that almost 80% of all Bitcoin in circulation had not moved in the past six months. This goes on to show that many are refusing to sell their BTC or are just accumulating more of the supply. Given this, he estimated that there’s currently only $200 billion worth of tradable BTC, and the spot Bitcoin ETFs have already sucked up 5% of these in just a month.
Pompliano added that the incessant money printing of central banks combined with the debasement of fiat currencies are further turning people into Bitcoin as they seek ways to hedge their wealth against inflation. Moreover, there’s the having event looming that will tighten the BTC supply by half.
“If this continues, that we have 12.5 times more demand… this thing’s going back to its all-time high. It’s pretty much guaranteed,” Pompliano forecasted.