Pompliano says many people claimed bitcoin failed as an inflation hedge last year, but they missed
A popular crypto influencer explained that Bitcoin is still the best hedge against rising inflation in the world.
Anthony Pompliano is a popular crypto Investor, influencer & host of The Pomp Podcast. Recently he took to Twitter to share his opinion on those people who claimed that Bitcoin failed as a hedge against inflation, last year.
Pompliano said that Bitcoin is the best Inflation hedge in his personal opinion and he claimed that many people criticized Bitcoin investment last year but in reality they missed it.
“Bitcoin is the best inflation hedge in my opinion. Many people incorrectly stated that bitcoin failed as an inflation hedge last year, but they missed what was happening,” Pompliano said.
Further Pompliano explained that the market doesn’t work on behalf of the past economic situation, instead depends upon the future & what people think about the future.
On Bitcoin’s all-time high, which was $69k/BTC, Pompliano said that Bitcoin showed a rapid increment in price between 2020 to Q3 2021 because of the rise in inflation.
Bitcoin was around $10,000 for much of 2020, but we saw it increase to over $60,000 by March 2021.
— Pomp
That is a 600%+ gain in less than a year.
Although inflation was still low, investors bought it IN ANTICIPATION of inflation coming.(@APompliano) March 17, 2023
Pompliano noted that Bitcoin started to show a downfall after Nov 2021 because the United States Fed announced that they decided to slow down inflation via tight policies.
As inflation continued to increase, bitcoin kept hitting new all-time highs.
— Pomp
It culminated with bitcoin hitting $69,000 in November 2021.
Why was that the top?
The Fed told everyone they were going to tighten financial conditions and bring inflation down.
In this way, Crypto Influencer explained that if inflation will surge then people will buy Bitcoin & if inflation will plunge people will stop buying Bitcoin and in this way, Bitcoin price will change accordingly.
Bitcoin price
The current price of Bitcoin is $27,642 & this trade price is 16.42% high over the last 30 days of trade price.
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