Pompliano: "Just as the dollar (USD) has no bottom, Bitcoin (BTC) has no ceiling"

▲ Bitcoin (BTC), Dollar (USD)/ChatGPT generated image

Driven by the decline in the dollar's value and global liquidity expansion, Bitcoin (BTC) has entered a new bull market, commencing its vigorous run. The expansion of the U.S. Treasury's bond buybacks, coupled with the breakthrough of key technical resistance levels, propelled it past the $86,000 mark in an instant.

On September 22 (local time), the cryptocurrency-focused YouTube channel Altcoin Daily stated in an uploaded video that "Bitcoin is the asset most sensitive to global liquidity." It further suggested the possibility of additional surges, saying, "Just as there is no bottom for the dollar as long as the U.S. government keeps printing money, there is no ceiling for Bitcoin." Citing financial analyst Anthony Pompliano's remarks, it drew the line that breaking $86,000 is not the peak.

The U.S. Treasury's large-scale liquidity injection policy was identified as the key catalyst for this rally. The Treasury bond buyback program, spearheaded by Treasury Secretary Scott Bessent, alleviated the liquidity drought and ignited risk asset preference. Pompliano analyzed in a Fox Business interview, "Amidst a national debt exceeding $40 trillion and annual interest costs of over $1 trillion, the government is increasing its bond purchases." He added, "Regardless of the passage of the U.S. crypto market structure bill (CLARITY), Bitcoin is staging its own independent liquidity rally."

Chart indicators also show clear signs of a trend reversal. Bitcoin reclaimed both its 50-day and 200-day moving averages on the daily chart. On a weekly basis, it strongly broke through the 50-week moving average, a historical turning point. While the Relative Strength Index (RSI) maintained an upward trend, the Moving Average Convergence Divergence (MACD) also confirmed that downward pressure was dissipating. Notably, over the past three months, it recorded an outperformance of more than 42% compared to the tech-heavy Nasdaq, realizing a significant shift of funds from the stock market to virtual assets.

The altcoin market is also showing explosive growth. Solana (SOL) recorded 208 million transactions in weekly volume, surpassing the New York Stock Exchange (NYSE), which remained at 190 million transactions. Ethereum (ETH) is heading towards a 67% return in Q3, aiming for its highest-ever quarterly performance. Big tech companies like Google (Alphabet, GOOGL) and Apple (Apple, AAPL) are accelerating institutional adoption by hiring dedicated managers for virtual assets and stablecoins.

Even experts who had maintained a bearish stance admitted their market judgment failure and reversed their positions. Virtual asset analyst Benjamin Cowen retracted his previous assessment from May that breaking the all-time high was impossible, stating, "Bitcoin has broken through the 50-week moving average and is approaching $86,000." He added, "It was a clear misjudgment, and Bitcoin has re-entered a bull market."

[Article Key Summary]

-Bitcoin (BTC) surpassed $86,000, fueled by liquidity from U.S. Treasury bond buybacks.

-Technically, it crossed the 50-week moving average and generated over 42% excess returns compared to Nasdaq, signaling a rotation of funds.

-Solana's (SOL) trading volume overtook the New York Stock Exchange, and Ethereum (ETH) surged 67% in Q3, indicating a broad market shift to a bull market.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*