Morgan Creek Capital founder Anthony Pompliano says that Bitcoin (BTC) is oversold, detailing what catalysts could spring the crypto king back to life.
In a new interview on CNBC Television, Pompliano says that the top crypto asset by market cap should mount a solid recovery once traders start paying attention to the crypto markets again.
“Right now at $110,000, it’s pretty oversold. And so I would expect that you have two things lining up. You’ve got kind of the overselling of Bitcoin and you’re headed into September, October, which is usually a pretty good time, especially if it is the year after halving.
But also, if you look at the VIX (S&P 500 volatility index) seasonality chart, usually right about now, you’ll start to see the VIX really start to kind of move upwards. And we get a lot more volatility. And so I just think that it’s August. People are on vacation. They’re tired. They’re not paying attention. And things kind of just draw down. And starting in September we should see Bitcoin kind of come back alive again…”
According to the investor, a combination of speculation that the Federal Reserve will cut interest rates and traders returning from their vacations should serve as catalysts for BTC’s rise near the end of Q3 or the start of Q4.
“I think there is kind of a simple thing of just like people in front of their screens in September, they’re not in front of their screens in August. And so people are buying and being more active. But also, I think that you’ve got a lot of speculation on a Fed interest rate cut.
I think you’ve got a lot of the people who raised capital for these Bitcoin treasury companies that are going to start buying in kind of late August, early September. And then I also think that if people believe, the end of Q3 and the beginning of Q4 is a good time for Bitcoin.”
Bitcoin is trading for $112,974 at time of writing, a fractional decrease during the last 24 hours.
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