(Kitco News) - Bitcoin is in a downtrend amid selling pressure after nearly hitting record highs in early June, but the cryptocurrency is in store for another "explosive parabolic move" in post-summer trading action, says Anthony Pompliano, Founder of Pomp Investments and Host of The Pomp Podcast.
After jumping above $70,000 at the start of June and approaching its all-time high of around $73,738, Bitcoin is down around 19% as it trades below $60,000.
"We've seen that in Bitcoin … where there's these explosive periods of price movement from January to May. Summer is usually sideways. And then we get these explosive parabolic moves again during bull markets towards the end of Q3 and into Q4," Pompliano told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News.
Top triggers for next 'explosive parabolic move'
One key driver behind the next move higher is more companies getting exposure to Bitcoin. Pompliano pointed to a trend of more public companies embracing Bitcoin as a treasury asset – a move led by MicroStrategy and its CEO, Michael Saylor.
"Now when it comes to the public companies, MicroStrategy gets credit for being the first non-Bitcoin, non-crypto company to put Bitcoin on their balance sheet … And so then you quickly got Elon Musk and Jack Dorsey with both of their respective companies to do something similar. But it kind of went quiet after that," he said. "Now, we've seen a spattering of these businesses. And they're not just even in the United States."
Watch the video above to get Pompliano's list of companies that have been buying Bitcoin to diversify their balance sheets – just like they would U.S. Treasuries and gold.
"Let's say 1 percent of 10 percent of corporate balance sheets in America go and buy Bitcoin. That's a lot of buying power. And so for an asset that is $1.2-1.3 trillion in market cap, you don't need that much buying power to continue to move this thing upwards. It's infiltrating the public markets," Pompliano added.
Pompliano noted reports of a major sovereign wealth fund potentially coming out and announcing that it has been adding Bitcoin to its balance sheet. For Pompliano's insights on that, watch the video above.
For other top triggers behind the next explosive move higher, watch the video above.
Weak fiat currencies to get dumped as BTC & USD 'strengthen simultaneously'
Pompliano also weighed in on whether Bitcoin poses an existential threat to the U.S. dollar's status as the world's reserve currency, stating that the two will co-exist and rise in value simultaneously despite increased Bitcoin adoption.
"Not only is the U.S. government not going to ban Bitcoin, the U.S. government is going to need Bitcoin," Pompliano told Kitco News. "We actually have data today, and what we find is that Bitcoin and the dollar continue to strengthen simultaneously."
It is the other weak fiat currencies that will be in trouble going forward. "[They] are going to get dumped in international markets. And people are going to look to Bitcoin and to dollars because the global accessibility of them has become so powerful," he said.
On how stablecoins help the U.S. dollar preserve its power globally, watch the video above.
Watch the video above to hear Pompliano's thoughts on the U.S. election and whether a win by former President Donald Trump can boost Bitcoin's price.
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