During a recent appearance on CNBC's Squawk Box, venture investor and cryptocurrency advocate Anthony Pompliano, also known as Pomp, discussed the factors driving Bitcoin's recent surge.
Analyzing Bitcoin's Recent Surge: Insights from Pomp on Key Drivers
Pomp highlighted Bitcoin's consistent growth since the beginning of the year, despite its day-to-day volatility. He attributed the recent price increase, exceeding 10%, to several key drivers.
Firstly, Pomp noted that the price action around the recent halving event has followed historical patterns. Typically, Bitcoin experiences a run-up of about 19% in the month before a halving, followed by a more modest increase of 1-2% in the month afterward. This trend has largely held true in the current market conditions.
Additionally, Pomp pointed out a significant milestone for Grayscale's GBTC ETF, which saw a $63 million inflow on Friday, marking the first inflow in four months. As the largest Bitcoin ETF, this influx of capital stimulated the price of Bitcoin.
Another crucial factor contributing to Bitcoin's surge is the all-time high reached by its 200-day moving average, surpassing $50,000 for the first time. Although Bitcoin briefly exceeded $65,000 earlier today, it has since experienced a minor correction, currently trading at $63,800.
Pomp's analysis underscores the complex interplay of market dynamics driving Bitcoin's price movements, highlighting both historical trends and recent developments in institutional investment.