A recent sell-off in the Bitcoin market pushed the price below key psychological support of $ 30,000.

While the downtrend has predicted another downward move below $ 25,000 by many analysts, including Luno’s Vijay Nayyar and Kinetic Capital’s Jehan Chu, Anthony Pompliano offered a bullish outlook.

Anthony Pompliano – Founder of Morgan Creek Digital Assets

The founder of Morgan Creek Digital Assets has tipped risk markets against fears of a rapidly spreading delta variant of Covid-19. He noted that governments will generally introduce “more aggressive monetary stimulus” if the new strain of coronavirus spreads widespread.

“History is not necessarily an indicator of the future, but it is difficult to imagine a second wave of quarantines without stronger monetary stimulus measures. When that happens, we will likely see all assets continue to rise, ”wrote Pompliano.

With this in mind, Pompliano envisions that the path to more US dollar liquidity will go through seven successive phases:

1. The number of cases of the Delta variant of Covid-19 increased rapidly.

2. Delta variant deaths are controlled by vaccines.

3. Politicians feel pressured and have to cite past actions to show that they are “doing something”.

4. Politicians enforce the order to wear masks first and then call for a second wave of quarantine / stay at home.

5. The second wave of government action caused economic damage.

6. The Federal Reserve, elected officials, and other business organizations see the need to intervene under the guise of helping ordinary people.

7. We will see historical increases in fiscal and monetary stimulus.

Expected FOMO Asset risk

Pompliano’s statement comes as the Bitcoin market fell on Monday in line with other risk assets worldwide.

For example, all three Wall Street indices – the S&P 500, Nasdaq Composite, and Dow Jones – saw their largest weekly declines in weeks. Additionally, gold temporarily fell to a low of $ 1,795.12 an ounce but rebounded to $ 1,812,145 by the end of the session.

Bitcoin Discount with the market share America on Monday 2 | Source: TradingView.com

At the same time, US Treasuries rose alongside the dollar, suggesting investors are heading for safe havens amid the global market turmoil.

Has a global medium news that behind this process is a growing list of resilience concerns. In particular, the Delta variant of Covid-19 spread quickly and stimulated the dialogue in some countries about whether the authorities should reintroduce quarantines and restrict economic activity.

Mohammed Kazmi, portfolio manager at Union Bancaire Privée, told the Financial Times:

“Hopefully a Covid-19 vaccine will solve the situation. “Investors are watching the UK right now and there is a little fear of such a large reopening if the number of cases remains high.”

Kazmi added that markets are now giving up hope of a V-shaped recovery and are feeling uncertain about the future of the economy.

Pompliano’s comments also come as the Federal Reserve (Fed) endorses the idea of ​​hitting lending rates to near zero by the end of 2023 in an attempt to stem inflation spikes.

In addition, some central bank officials also support the $ 120 billion monthly purchase program cut.

James Wo, founder and CEO of the global blockchain and digital asset investment firm Digital Finance Group, also noted that while the Bitcoin industry is experiencing negative fluctuations in the market cycle for the time being, the fundamentals affect its value and other markets for the whole Year 2020 remains unaffected. He added:

“The stories that brought digital assets at this discounted price can all be removed from the FUD list, which will ultimately affect the price of the entire market.”

At home at home

According to Cointelegraph

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