Bitcoin Surges 25% as ETF Inflows Hit $1.2 Billion

Anthony Pompliano, the founder and CEO of Professional Capital Management, has highlighted that Bitcoin (BTC) is currently the center of attention on Wall Street, driving the cryptocurrency markets to new heights. In a recent interview, Pompliano identified three primary factors fueling this upward trend.

The first factor is the substantial inflow of capital into Bitcoin exchange-traded funds (ETFs). Last Thursday alone saw record inflows of $1.2 billion, the second-highest daily inflow ever recorded. Collectively, these ETFs now hold over $140 billion in assets, with BlackRock's fund approaching $90 billion. This rapid growth, from having no Bitcoin ETFs to ranking among the top 20 largest ETFs globally within a year, underscores the significant interest and investment in Bitcoin.

The second factor is the expiration of options at the end of the second quarter, which has removed downward pressure on Bitcoin. This relief has allowed Bitcoin's price to rebound, much like a beach ball resurfacing after being submerged.

The third factor is the presence of numerous short sellers, which has contributed to a price discovery phase. As these short positions were liquidated due to Bitcoin's upward momentum, the cryptocurrency entered a phase of true price discovery. This phase was evident in November when Bitcoin surged from $70,000 to $90,000 within just two to three weeks, setting a new all-time high.

Pompliano, while not providing specific price targets, anticipates a significant price movement for Bitcoin. He notes that the cryptocurrency has surpassed its previous all-time high of $110,000, indicating that it is now in a true price discovery phase. Although he does not predict a specific target, he suggests that Bitcoin is poised for a substantial move, potentially reaching $140,000 or higher. This optimism is based on the current market dynamics and the removal of previous barriers to price appreciation.