Bitcoin Bull Anthony Pompliano Presents Crypto Outlook For 2022, Says BTC May Be Correlated To This Surprising Indicator

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Bitcoin bull Anthony Pompliano claims that higher interest rates in 2022 could impact the price of BTC differently than many analysts initially assumed.

Pompliano, the co-founder of Morgan Creek Digital, told CNBC in a new interview that BTC could potentially be correlated with a surprising indicator.

“The other thing I’m looking at right now, and I don’t think we have enough data yet, but over the last couple of weeks I’ve seen a few analysts talking about this idea that the price of Bitcoin is actually following. / correlated to [U.S.] 10-year Treasury yield.

Traders monitor the performance of the 10-year Treasury yield to gauge investor sentiment and risk appetite.

A rising yield suggests market confidence as investors opt for risky assets that generate higher returns. On the flip side, a falling yield indicates market cautiousness as investors look to Treasury bonds to protect their capital.

Federal Reserve officials recently indicated that they plan to cut asset purchases and raise interest rates next year in a bid to fight inflation.

Pompliano notes that if the correlation between the 10-year Treasury yield and Bitcoin holds true, such a policy could in fact be bullish for Bitcoin.

“So now you’d think most of the risky assets, as interest rates go up, we should see the risky assets sell off, right? You go back to the ’99 Dot Com bubble, a lot of people would say that interest rates are a key factor in popping that bubble. But if Bitcoin is actually going to trade alongside [the 10-Year Treasury Yield] – again, we need more data – if this is true, in a crazy way raising interest rates could be bullish for Bitcoin.

Pompliano notes that some of his past predictions did not come true. In 2019, he predicted that Bitcoin would hit $ 100,000 by the end of 2021, based on roughly 18 months after the most recent halving in May 2020.

explains the trader,

“One of the things that I watch is that the 18 month deadline can be shifted. We can actually see longer bull markets now rather than the 18 month ones we’ve seen before. Time will tell us. The hindsight will be 20/20 on this. But I think it’s something to watch out for.

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