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

While the downtrend in the cryptocurrency has led many analysts, including Vijay Nayyar from Luno and Jehan Chu from Kinetic Capital, to predict another move below $ 25,000, Anthony Pompliano has formulated an opposing bullish outlook.

The founder of Morgan Creek Digital Assets competes with the risk market against fears of a rapidly spreading delta variant of Covid-19. He noted that governments will generally introduce programs of “more aggressive monetary stimulus” if the novel coronavirus spreads at its alpha level.

“History is not necessarily an indicator of the future, but it is difficult to imagine a scenario in which we would not have had a stronger monetary stimulus effort in a second wave of lockdowns,” wrote Pompliano.

“When that happens, we’ll likely see all of the content go up and up.”

With this in mind, Pompliano envisions that the road to more dollar liquidity will go through seven consecutive phases, as shown in the following snapshot:

Expect FOMO to be risky

Pompliano’s statement comes as Bitcoin markets worldwide fell in sync with other risk assets on Monday.

For example, all three Wall Street indices – the S&P 500, Nasdaq Composite, and Dow Jones – posted their largest weekly losses 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.

Meanwhile, US Treasuries rallied against the dollar, suggesting investors are looking for safe havens amid the global market turmoil.

Global media has reported that there is a growing list of recovery concerns behind the process. In particular, the delta variant of Covid-19 has spread quickly and revived the dialogue in several countries as to whether the authorities should again impose bans and restrict economic activity. .

“Hopefully [the Covid-19] Mohammed Kazmi, portfolio manager at Union Bancaire Privée, told the Financial Times. “Investors are looking to the UK right now and there is a bit of a fear of a major reopening if the cases are still this high. . “

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

Connected: The inventory flow model could become invalid if Bitcoin price loses $ 30,000

Pompliano’s comments also come when the Federal Reserve proposed the idea of ​​hike lending rates near zero by the end of 2023 in an attempt to contain rising inflation.

Additionally, some central bank officials also support the idea of ​​slashing the asset purchase program by $ 120 billion per month, despite Chairman Jerome Powell making it clear that the Fed intends to ease policy as the economy is fully recovering.

James Wo, founder and CEO of the global blockchain and digital asset investment firm Digital Finance Group, also noted that while the bitcoin industry has seen negative cycle fluctuations in this current market, the fundamentals that drive its value and other markets above all else 2020 have continued to remain unaffected. He added:

“Any combination of stories that brought the digital asset at this discounted price could be excluded from the FUD listing, which ultimately affects the price of the entire market.”