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Bitcoin quickly dropped by 10%, causing widespread fear. Many investors are now severely impacted, facing significant losses and liquidations. In a recent interview with Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, Anthony Pompliano, Founder of Pomp Investments and Host of The Pomp Podcast, shared his insights on the future of Bitcoin. 

Bitcoin Price Analysis

Bitcoin recently saw significant price movements, reaching $70,000 in mid-June before dropping below $60,000 and stabilizing above $61,000. 

Pompliano went on to share insights into Bitcoin’s potential future trajectory. Drawing references from similar record-breaking moments, Pompliano highlighted Bitcoin’s historical tendency to double in price post halving and surpassing an all-time high.

He gave a simple explanation and said, “People often see big price movements in Bitcoin at the beginning of the year and in the last quarter (Q4). The middle of the year (Q2 and Q3) usually sees the price staying more stable. He believes that’s what is happening now.”

Institutional Involvement and Global Impact

Pompliano highlighted three main buyer categories influencing Bitcoin’s market dynamics – pension funds, sovereign wealth funds, and ETF opportunities. 

He underscored the potential impact of institutional participation, citing instances of pension funds experiencing substantial returns on Bitcoin exposure. Additionally, Pompliano noted the slow and steady rise in interest of sovereign wealth funds.

Pompliano believes that the upcoming Federal Reserve decisions on interest rates will also play a crucial role in Bitcoin’s price movements. He predicts that regardless of whether the Fed cuts rates before or after the election, Bitcoin’s price is likely to rise over the next 18 months.

He is also manifesting a bigger price change once the Ethereum ETFs hit the market which would mark a watershed moment in the cryptocurrency industry, opening it up to a torrent of institutional investments.

Bitcoin vs. Dollar

In conclusion, Anthony Pompliano cleared the biggest economic fear and said that Bitcoin is not a threat to the US dollar. Instead, both Bitcoin and the dollar are getting stronger at the same time. Weak currencies are declining, while Bitcoin is viewed as a way to save money, and the dollar is used for spending. He also thinks the US government won’t ban Bitcoin because both political parties and major financial institutions support it. He mentioned former President Trump has become a vocal supporter of Bitcoin, which could influence the political landscape and regulatory environment in favor of cryptocurrency.