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Bitcoin Bull Anthony Pompliano sets crypto outlook for 2022, saying that BTC could be correlated with this surprising indicator

Bitcoin bull Anthony Pompliano says higher interest rates in 2022 could have a different impact on the price of BTC than many analysts originally thought.

Pompliano, the co-founder of Morgan Creek Digital, tells CNBC in a new interview that BTC could potentially be correlated with a surprising indicator.

“The other thing I’m watching right now and I think we don’t have enough data yet, but in the past few weeks I’ve seen a couple of analysts talking about this idea that the price of bitcoin is actually being tracked / correlated with the [U.S.] 10-year treasury yield. “

Traders track the performance of the 10-year Treasury yield to gauge investor sentiment and risk appetite.

A rising return indicates market confidence as investors choose risky assets that generate higher returns. On the flip side, a falling yield suggests market caution as investors turn to government bonds to protect their capital.

Federal Reserve officials recently announced plans to cut asset purchases and raise interest rates over the next year to help fight inflation.

Pompliano notes that such a policy could actually be bullish for Bitcoin if the correlation between the 10-year Treasury’s return and Bitcoin is true.

“So you’d think by now that if interest rates go up, most risk assets should actually sell out, right? If you go back to the dot-com bubble of ’99, many people would point out that interest rates are a key factor in causing that bubble to burst. But if Bitcoin is actually traded on the side [the 10-Year Treasury Yield] – again we need more data – if that’s true, an insane rate hike could be bullish for Bitcoin. ”

Pompliano notes that some of his earlier predictions have not come true. In 2019, he predicted that Bitcoin would hit $ 100,000 by the end of 2021, based on it being about 18 months after the last halving in May 2020.

Explains the dealer,

“However, one of the things I’m observing is that the 18 month timeframe may not be right. We may now see longer bull markets than the 18 month markets we saw before. We will see. In retrospect it will be 20/20. But I think that’s one thing to watch out for. “

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Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in bitcoin, cryptocurrency, or digital assets. Please note that your transfers and trades are made at your own risk and that any losses you incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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