Bitcoin Bull Outlines 7 Steps For More Fiscal Stimulus And Higher BTC Prices

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A recent massive sell-off in the Bitcoin (BTC) market pushed its prices below the key psychological support of $ 30,000.

While the cryptocurrency’s decline prompted many analysts, including Vijay Nayyar of Luno Exchange and Jehan Chu of Kinetic Capital, to predict further depressive movement below $ 25,000, Anthony Pompliano offered a mixed bullish outlook.

The founder of Morgan Creek Digital Assets pitted risk markets against fears of the rapidly spreading Delta variant of Covid-19. He noted that governments, by and large, would introduce “more aggressive monetary stimulus” programs if the new strain of coronavirus spread at the scale of its alpha version.

“History is not necessarily a predictor of the future, but it’s hard to imagine a scenario where if we had a second wave of lockdowns we wouldn’t get more aggressive monetary stimulus efforts either. “, wrote Pompliano.

“If that were to happen, we would probably see all assets continue to grow more and more.”

In saying this, Pompliano envisioned that the road to more dollar liquidity would unfold in seven successive stages, as shown in the snapshot below:

The seven potential stages ahead that the new Delta variant hopes to recover. Source: Anthony Pompliano NewsletterRisk-on FOMO expected

Pompliano’s statements emerged as the Bitcoin market went out of sync with other risky assets around the world on Monday.

For example, the three Wall Street indices, the S&P 500, the Nasdaq Composite and the Dow Jones, recorded their biggest declines in weeks. Additionally, gold at one point fell to $ 1,795.12 an ounce but rallied to $ 1,812.145 an ounce to close the session.

Bitcoin slipped in tandem with the U.S. stock market on Monday. Source: TradingView.com

Meanwhile, the US government bond rallied alongside the dollar, showing investors were heading to safe havens amid the turmoil in global markets.

Behind the rout, world media reported, was a growing list of concerns about the recovery. In detail, the Delta variant of Covid-19 has spread rapidly, reigniting dialogue in several countries on whether authorities should reimpose the lockdown and curb economic activity.

“The hope was that [the Covid-19] vaccines would provide us with the end of the game, ”Mohammed Kazmi, portfolio manager at Union Bancaire Prive, told the Financial Times. “Now investors are watching the UK and there is a bit of fear about reopening so aggressively when cases are still so high. . “

Kazmi added that the markets are now dropping hopes of a V-shaped recovery and feeling uncertain about the future of their economies.

Related: Stock-To-Flow Model May Be Invalidated As Bitcoin Price Loses $ 30,000

Pompliano’s comments also emerged as the Federal Reserve flirted with the idea of ​​raising lending rates close to zero by the end of 2023 to curb rising inflation.

In addition, several central bank officials have also favored the idea of ​​cutting their aggressive asset purchase program by $ 120 billion per month, although President Jerome Powell has clarified that the Fed intends to carry out the quantitative easing policy until the US economy has fully recovered.

James Wo, Founder and Managing Director of the global blockchain and digital assets investment firm, Digital Finance Group, also noted that while the Bitcoin industry has experienced downward volatility during this cycle of current market, the fundamentals that have driven its value up and that of other markets through 2020 continue unaffected. He added:

“Any combination of narratives that brought digital assets to this discounted price can be ticked off of FUD’s listings that would ultimately have affected the price of the entire market.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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