Morgan Creek Digital co-founder Anthony Pompliano believes that Wall Street firms will try to normalize cryptocurrency markets as interest surges in the space.
October has been a prolific month for the overall sentiment in the cryptocurrency space due to a number of factors. Perhaps most importantly, international payment service provider PayPal announced that it would be adding cryptocurrency support.
The result has seen the price of Bitcoin surge to as high as $13000 – a price not seen since 2019. A number of traditional financial analysts and industry experts have made some astute observations about the future value and utility of Bitcoin as a result of the surging interest and major investments made by companies like MicroStrategy this year.
Move to digital is driving adoption
In his daily newsletter to investors, Pompliano pointed to a number of analytical arguments and insights from the likes of Raoul Pal, Alistaire Milne and Galaxy Digital founder Mike Novogratz that outline various different arguments behind the mounting interest in Bitcoin.
Pal’s insights were focused on what Pomp describes as the predictable price movements of Bitcoin due to the programmatic supply schedule. Analysts simply need to factor in the current demand for Bitcoin, given that the supply of the cryptocurrency is set in stone.
Perhaps more telling was Novogratz’s comments on CNBC’s Squawkbox show, where he highlighted the drive for digitized payment systems that has been expedited in part by the COVID-19 pandemic.
“It was the COVID virus that really accelerated adoption of crypto – the macro story with Bitcoin, and more maybe important story of digitalization of all cash,” Novogratz said during his appearance on the show.
FOMO could get real
Having given an overview of the bullish sentiment that is brimming, Pompliano believes that there is going to be increased ‘FOMO’ by the traditional financial space.
“This combination of positive price action, digital financial system talk track, and other large companies making moves in the space will set off a chain reaction. Every bank and financial institution is asking themselves the same question right now — “what are we going to do in Bitcoin and crypto?”
The result will see an increasing number of institutions and companies looking to enter the cryptocurrency markets.
On the flip side, cryptocurrency exchanges and development houses could see increased interest from investors
“M&A consolidation is an easy trend to see coming. We should also see large crypto companies going public. This will all be part of Wall Street’s attempt to normalize the crypto markets. That is positive for Bitcoin and crypto asset holders, but let’s not forget why we are here. We aren’t here to be another asset on Wall Street. The goal is to disrupt the status quo and use technology to build a better, more equitable world.”