Spot Bitcoin ETFs in the US have experienced their longest span of outflows in over four months, although crypto entrepreneur Anthony Pompliano suggests that Bitcoin’s price may currently be undervalued.
In the last five trading days, spot Bitcoin (BTC) ETFs have encountered approximately $1.17 billion in outflows, marking the longest sequence since a seven-day outflow period in April, when Bitcoin was trading close to $79,625, as reported by Farside and CoinMarketCap.
Pompliano stated on CNBC this Thursday that Bitcoin is likely trading below its true value. At the time of writing, it was valued at $112,870.
Bitcoin poised for a more active buying phase: Pompliano
“Currently at 112, 113,000, Bitcoin appears significantly oversold,” Pompliano remarked. He pointed out that Bitcoin’s oversold indicators, along with the approaching months of September and October following the April 2024 halving, could signal a potential price increase.
“People are more active and engaged in September; they’re less so in August, which leads to increased buying activity,” he mentioned.
It has only been a little over a week since Bitcoin hit new all-time highs of $124,128 on August 14.
Historically, Q3 has been Bitcoin’s weakest quarter, yielding just 6.02% on average since 2013, contrasted with Q4, which has exhibited an average gain of 85.42%, as noted by CoinGlass.
Pompliano suggests that when investors anticipate a repeat of past trends, it can drive buying behavior.
“If people think the end of Q3 and the beginning of Q4 is a favorable time for Bitcoin, it influences their actions accordingly,” he explained.
Pompliano skeptical about $1 million Bitcoin this cycle
While Pompliano foresees Bitcoin gaining traction as the year progresses, he expressed skepticism about it reaching $1 million in this cycle, although he believes it could happen in the future.
He added that speculation surrounding the anticipated US Federal Reserve rate cut on September 17, along with treasury firms accumulating more capital to invest in Bitcoin, may boost its demand.
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“Bitcoin will undoubtedly reach one million at some point in the future, but I consider it highly unlikely for this cycle,” Pompliano affirmed.
This prediction from Pompliano came just a day after Coinbase CEO Brian Armstrong mentioned having a “rough idea” that Bitcoin could reach $1 million by 2030.
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