Anthony Pompliano aka Pomp justified Bitcoin being a non-correlated asset and that it is not falling in relation with the FAANG [Facebook, Apple, Amazon, Netflix and Google] stocks or the S&P500, in an interview on CNBC on December 27.
Bitcoin has mostly has suffered more downs in 2018 than ups and it is still trying to get on the bull run that everyone expects it to. Speaking about the fall of S&P500 and other traditional stocks and Bitcoin, Pomp said that Bitcoin is not related to any of these.
“Bitcoin is definitely a non-correlated asset. If you look at the correlation between the digital assets and the S&P500 over the last 108 days, it’s at zero. If you look at it compared to dial index, it’s zero. So it’s proven that it is not correlated and we expect that to continue.”
Furthermore, Pomp said that if the people who have invested in Bitcoin are smart, they would have invested about 1% of their portfolio in Bitcoin and other cryptocurrencies. He added:
“Equities is going to be a major portion of their portfolio and so they’re going to get hit much harder on the equity side, even though Bitcoin itself has drowned down more, it’s just the size of the portfolio. But I definitely agree there is some psychological components at play here as the stock market pulls down.”
Moreover, Pomp said that Bitcoin still has room to go lower than $3,000 before Bitcoin actually begins going up on a bull run.
Pomp went on to say his famous quote:
“Long Bitcoin and short the bankers”
Addressing the Bitcoin non-believers, Pomp said that Bitcoin or cryptocurrencies were math based, incredibly transparent and driven by software. Traditional banking and financial systems are completely non-transparent and are involved in many nefarious activities. He said cryptocurrencies are still small and have a lot of room to improve.
Mati Greenspan commented:
“Great segment Pomp!!
You’re correct about it being uncorrelated, especially on a day to day basis. However, I believe that the macroeconomic backdrop does tie them together.
For example, look at a graph of BTC Vs the Dow over the last two years and the trend becomes clear.”
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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.