- The next Bitcoin Bull Market is driven by liquidity and lower interest rates, says Pompliano.
- Pompliano predicts that interest rate cuts over 12-18 months will benefit all investable assets.
- Bitcoin will continue growing regardless of political leadership, demonstrating its resilience.
- Pompliano believes Solana’s cheaper, faster platform will outperform Ethereum in the short term.
According to Anthony Pompliano, the Bitcoin bull market is on its way, and the driving forces are liquidity and interest rates.
In a recent interview, Pompliano said that the Fed will bring interest rates down over the next 12 to 18 months, and that will serve as a tailwind for all investable assets.
Liquidity as the Catalyst for the Next Bitcoin Bull Market
Pompliano described the shift in liquidity as a “regime change,” where the focus now is on expanding the money supply and cutting interest rates. So, as Pompliano noted, “What we’re watching right now is a regime change in global liquidity. You have interest rate cuts in the United States, China, and elsewhere around the world.”
The U.S. Federal Reserve’s actions play a vital role. From March 2022 to September 2024, the Fed raised interest rates steadily. However, Pompliano explained that things changed in September 2024 when the Fed started cutting rates. “In September of 2024, they decided they were going to start cutting interest rates,” Pompliano said. So, he predicts this trend will continue for the next 12 to 18 months. Lower interest rates and an expanding money supply will create favorable conditions for the Bitcoin bull market to flourish.
Interest Rates: Key Next Bitcoin Bull Market
Interest rates are another major factor in Pompliano’s view of the upcoming Bitcoin boom. So he explained that when interest rates are low, the cost of borrowing money decreases. Which encourages investment and boosts asset prices. Pompliano says, “If they are expanding and stimulating, asset prices go up. If they are tightening and draining liquidity, asset prices go down.”
Pompliano is confident that the Federal Reserve will continue to lower rates, providing a strong push for asset prices to rise, including Bitcoin. “They are going to bring interest rates down over the next 12 to 18 months, and that is going to serve as a tailwind for all investable assets,” he stated. This trend aligns with his broader view that, over time, Bitcoin and other cryptocurrencies will benefit from these economic conditions.
Bitcoin Resilience Across Political Shifts
Pompliano dismissed the idea that Bitcoin’s success depends on any political figure or election outcome. He was clear that Bitcoin has thrived regardless of who is in office, stating, “Bitcoin and cryptocurrencies are going to be successful regardless of who the president is.” So, Pompliano pointed to Bitcoin’s performance over the past 15 years, despite changes in political leadership. Whether Republicans or Democrats were in power, Bitcoin continued its upward trajectory.
In response to recent predictions that a Trump victory could send Bitcoin to $90,000 and a Harris win could see Bitcoin fall to $30,000 or $40,000, Pompliano made it clear that Bitcoin will thrive no matter who holds office. “Look at how far we’ve come, multi-trillion dollar market cap and only continued adoption,” he said. So, this resilience, he argues, will continue to drive Bitcoin’s growth in the future.
Solana vs. Ethereum: A Different Bet
In discussing his personal investment strategy, Pompliano touched on why he recently sold all his Ethereum to buy Solana. “Solana is cheaper and faster,” Pompliano said. So, he explained that developers would naturally prefer a platform that offers lower costs and higher speeds, which could drive Solana’s growth faster than Ethereum’s. Since his initial investment, Solana’s price has tripled. Outperforming Ethereum, which has remained flat during the same period.
Although Pompliano remains bullish on Bitcoin as a long-term store of value, he takes a more tactical approach to other cryptocurrencies. “Bitcoin is an asset that I plan to hold and give to my grandchildren,” he said. In contrast, smart contract platforms like Solana are more about short-term growth for him. “In this cycle, I think Solana will outperform Ethereum,” he concluded.
Conclusion
Anthony Pompliano is confident that the next Bitcoin bull market is on the horizon, driven by liquidity expansion and falling interest rates. So, he points to the Federal Reserve’s policy shift and the increased global money supply as key factors that will fuel this growth.
As Pompliano said, “Interest rates are going to serve as a tailwind for all investable assets.” Whether it’s political shifts or competing cryptocurrencies, Pompliano believes Bitcoin will continue to grow and solidify its place as a leading store of value in the digital economy.
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