In a new interview with Fox Business, Morgan Creek Digital co-founder and host of ‘The Business Show’ podcast, Anthony ‘Pomp’ Pompliano, sheds some light on the state of Bitcoin (BTC) after recently reaching a new 12 month low.
Despite Bitcoin’s immense price drop losing nearly two thirds of its value, fundamentals remain strong, Pompliano explains:
“We are watching a divergence. Price and value are completely decoupling right now for Bitcoin. What I mean by that is, price is down from a $69,000 high in November to around $23,000 today.
But hash rate hit an all-time high today. The Bitcoin network has never been more secure than it is today. If you then go take a look at the Bitcoin wallet addresses with 0.01 Bitcoin, 0.1 Bitcoin or 1 Bitcoin in them, those all three have all hit all-time highs.
The Lightning Network capacity also is hitting an all-time high.”
Pomp continued, noting that it will just be a matter of time until BTC’s price and fundamental value converge again.
“That decoupling as the fundamentals continue to hit all-time highs and strengthen while price is falling, I think that at some point fundamentals and the value of Bitcoin will meet price.
The question is just where and when that happens.”
In conclusion, the Bitcoin bull comments on wealthy mainstream investment firms’ habits of selling their riskiest assets when markets are volatile.
“If you look at the institutional folks, Bitcoin began to get institutionalized and [it] is the riskiest thing in their portfolio.
So, if they’re going to go risk-off, they sell Bitcoin, and they happen to have a lot of Bitcoin because they have a lot of money in their portfolio.
So Bitcoin started to dump just like every other risk asset went down as well the last eight months.”
At press time, Bitcoin has been able to recover slightly and is moving hands at $22,627 according to CoinMarketCap. Nevertheless the flagship cryptocurrency is still down 25% compared to just a week ago.
I joined Fox Business to discuss bitcoin and the macro environment.
Value and price are diverging. Weak hands are selling to strong hands. We have been here before.
Thanks @LizClaman for having me. pic.twitter.com/1S6TckUguE
— Pomp 🌪 (@APompliano) June 13, 2022
https://platform.twitter.com/widgets.js
The post Bitcoin Fundamentals Remain Strong, Anthony Pompliano Says appeared first on iGaming.org.
Source: Igaming
