In a tweet on August 7, 2019, Anthony Pompliano, co-founder at Morgan Creek Digital said Bank of America believes the U.S. Federal Reserve may have to fall back on quantitative easing by the fourth quarter of 2019. If that happens, coupled with the Fed’s cutting of interest rates and Bitcoin’s planned halving by May 2020, then there’s no better script that can be written for Bitcoin’s exponential rise.
Federal Reserve May Rely on Quantitative Easing
According to Anthony Pompliano’s tweet, Bank of America believes that the Federal Reserve may rely on quantitative easing as early as the fourth quarter of the year. Quantitative easing is the supply of new money into the economy by central banks. The latter is in a bid to create liquidity and stimulate the economy.
On the other hand, the American entrepreneur noted that before this time, the Fed had begun cutting interest rates. The next step will involve printing money into the economy.
However, there is Bitcoin’s planned halving by May 2020, and these conditions that have been set could potentially spike Bitcoin’s price. In Pompliano’s own words, “You can’t write a better script for the rise of Bitcoin.”
In another tweet on August 7, 2019, Pompliano said:
“Central banks around the world are slashing interest rates. Soon they’ll start printing egregious amounts of money. Bitcoin halving approaching quickly. Buckle up. This may get insane.”
Pompliano Reveals 50% of His Net Worth is Held in Bitcoin
Pompliano, while on CNBC’s Squawk Box stated that 50 percent of his net worth is held in Bitcoin. The crypto enthusiasts also opined that Bitcoin is the most important asset, and it is irresponsible for institutions not to have exposure to Bitcoin.
According to the Bitcoin bull, it is the job of these institutions to find assets that can provide non-correlation to the rest of the market, especially in times of global instability.
In the same vein, Pompliano stated in a tweet on August 8, 2019, that almost all the institutions in the world are paying attention to Bitcoin and the infrastructure that is being built around it. He added that these are investors that manage trillions of dollars.
Bitcoin, the asset in question, is priced at $11,828 as at press time. The virtual currency seems to be warming up to revisit the $12,000 price level seeing that it had traded for hours around the $11,900 zone. However, there’s a lot of confidence that uncertainties in the global financial system, as well as Bitcoin’s halving, could help to spike its price from what it is today.
Disclaimer: The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of ZyCrypto. none of the information you read on ZyCrypto.com should be regarded as investment advice, Every investment and trading move involves risk, you should always conduct your own research before making any investment decision.