Bitcoin (BTC) is following a years-long bull trend which, if it continues, could see the coin double in price within the next few weeks alone, according to one analyst.
Pomp Investments founder Anthony Pompliano believes the digital currency could reach $138,000 in short order after conclusively breaking its previous all-time high of $69,000. The asset briefly broke the previous record on Tuesday at $69,210, and now trades just shy of it at $67,423.
Bitcoin Ready To Double In Price
During a Thursday interview with CNBC, Pompliano said:
“If we go back and we look at past record high breaks… three of the four times, Bitcoin doubled in eighteen days or less. Once you break through an all-time high, its price discovery – what is this thing worth?”
Back in December 2020, Bitcoin broke its previous all-time high of $19,600 which was first recorded in December 2017. By January 2021, the asset had already surged above $34,000.
A similar pattern was visible in early 2017. After cracking its 2013 high of $1200 in April, the asset had surged to $2500 by June.
Yet there’s one major difference this time around: Bitcoin’s new all-time high came before this year’s Bitcoin halving, while most new highs occur several months afterward. As such, the effects the event will have on Bitcoin’s market dynamic still haven’t been priced in.
“You had in the fact that we have the halving coming, and we’re about to go from 900 Bitcoin a day to 450… and it’s hard not to make an argument that Bitcoin is going much higher, and at a faster pace than we all expect,” Pompliano said.
Bitcoin’s Long Term Potential
Much of Bitcoin’s appreciation since the start of the year can be credited to new Bitcoin spot ETFs in the United States, which have absorbed over $8 billion in net flows since launching on January 11. Their success is expected to continue by most, with Bitwise CEO Matt Hougan claiming that corporations and wirehouses haven’t even begun buying them yet.
Pompliano expects three “main new buyers” to start investing in Bitcoin ETFs in the near future – two of which include public pension funds, and sovereign wealth funds. Eventually, he expects the asset’s market cap to surpass gold.
“What Bitcoin has become is an index for global liquidity,” he explained. “If you believe the dollar is gonna continue to be debased over the next decade, Bitcoin’s a winner.”
The value of Bitcoin stores in U.S. ETFs recently surged past $50 billion – more than half of that held by the nation’s gold ETFs. MicroStrategy CEO Michael Saylor said during an interview this week that the ETFs will soon surpass gold ETFs in AUM.