Morgan Creek Digital co-founder Anthony Pompliano still considers Bitcoin (BTC) to be the leading crypto asset.
In a new interview on CNBC’s Squawk Box, Pompliano says that the top crypto still has a lot of bullish fundamentals despite any downsides.
“If you look at how many people [who] hold Bitcoin are in profit, so basically wherever they bought Bitcoin, what that price was compared to now, 89-90% of people are in profit…
While we have an undisciplined monetary and fiscal policy, I’m not selling my Bitcoin. There are millions of other people who aren’t selling their Bitcoin and demand continues to increase.
We just saw this morning that Invesco is going to launch an (exchange-traded product) ETP with spot Bitcoin and I think you’re going to continue to see products like that come to market. Demand increases your fixed supply asset.
The US dollar price has to move up over time to accommodate everyone.”
Pompliano says that Bitcoin’s influence on the market shows that it is still the king crypto despite big moves by other coins, including Ethereum (ETH) and Solana (SOL).
“I think that Bitcoin is by far still the king. When it moves, everything else kind of moves with it. If Bitcoin goes down, other things tend to move down. That is changing a little bit, but I think it’s still true for the most part.”
He says that while it is true that investors are venturing on other crypto assets, they all still return to Bitcoin.
“Ultimately what you see is you see some rotation going on. Sometimes you’ll see Bitcoin move up and then people will move into some of the other cryptocurrencies, then they’ll come back into Bitcoin.”
The Bitcoin bull explains that just like in stocks and other financial markets, crypto investors lean towards less volatile assets.
“There’s still a market structure that’s at play here. Large caps are going to be less volatile than small caps in bull markets and in bear markets,
So I think that as people push out on the risk curve during a bull market, they kind of always come back to those less volatile assets in the bear market.”