- Anthony Pompliano predicts two significant events for Bitcoin: approval of a spot Bitcoin ETF and the block reward halving.
- He anticipates a surge in demand following the approval of a spot Bitcoin ETF and the subsequent Bitcoin block reward halving.
- The next Bitcoin block reward halving is expected to occur in April 2024.
Anthony Pompliano, a renowned venture capitalist, forecasts two major events for Bitcoin in the near future: the approval of a spot Bitcoin ETF and the block reward halving, which could lead to a significant increase in demand for Bitcoin.
Spot Bitcoin ETF and Block Reward Halving: A Potential Bull Market
Anthony Pompliano, in his recent appearance on CNBC, expressed his belief that regulators will eventually approve a spot-based Bitcoin exchange-traded fund (ETF). He suggests that if the approval of a spot Bitcoin ETF coincides with the next Bitcoin block reward halving, it could potentially trigger a full-blown bull market for the leading cryptocurrency. He further explained that the approval of a spot Bitcoin ETF would create a demand shock in the market, attracting a significant amount of assets into the sector. However, as the block reward halving approaches, this demand shock would intersect with a supply shock, potentially leading to a significant price increase similar to what was observed in 2020.
Bitcoin Block Reward Halving Explained
For those unfamiliar with the term, Bitcoin block reward halving refers to the process where the reward amount that miners receive for each block they mine is reduced by 50%. This event occurs approximately every four years, with the next Bitcoin block reward halving predicted to take place in April 2024.
Approval of Spot Bitcoin ETF Could Trigger Institutional Investor Influx
Understanding Blackrock’s Bitcoin plan is why so important. Thanks to @CryptoParadyme pic.twitter.com/Z4fpCIjthB
— CO NEWS (@coinotagen) September 4, 2023
Pompliano further emphasized that the introduction of a spot Bitcoin ETF to the market would likely attract strong and large investors to the leading cryptocurrency. He stated, “If you’re an individual investor and you’ve wanted exposure to Bitcoin in the last two, three, five years, you’ve probably found a way to do it. So, I don’t think there will be a lot of inflow from individual investors, but I don’t think sovereign wealth funds or large institutions are going into Coinbase and buying spot Bitcoin. I think the real inflow with a spot Bitcoin ETF will be from institutions.”
Conclusion
According to CoinMarketCap data, at the time of writing, Bitcoin is attempting to hold just above the $26,000 level, with a 0.49% increase in the last 24 hours. BTC’s price is trading at $26,010, with a 0.04% decrease in the last seven days. These predictions by Pompliano could potentially shape the future trajectory of Bitcoin, making it a topic of interest for cryptocurrency enthusiasts.
