Bitcoin may experience an "explosive parabolic trend"!

Founder of Pomp Investments and host of The Pomp Podcast, Anthony Pompliano, stated that after nearly touching an all-time high in early June, Bitcoin is currently in a downward trend under selling pressure, but this cryptocurrency is expected to once again exhibit an "explosive parabolic trend" in trading activity after the summer.

After breaking through $70,000 in early June, close to the historical high of around $73,738, the price of Bitcoin dropped by about 19%. During Monday's Asian session, Bitcoin surpassed $62,000 per coin, rising by about 2% intraday to reach a high since early July.

Pompliano said, "From January to May, the price of Bitcoin experienced explosive fluctuations. Bitcoin is usually sideways during the summer. Then, in the bull market at the end of the third and fourth quarters, we will once again see explosive parabolic trends."

One key factor driving Bitcoin further is the increasing adoption by more companies. Pompliano pointed out that more and more public companies are treating Bitcoin as an asset similar to U.S. Treasury bonds, a trend led by MicroStrategy and its CEO Michael Saylor.

Pompliano stated, "MicroStrategy is considered the first non-Bitcoin, non-cryptocurrency company to include Bitcoin on its balance sheet. Musk and Dorsey (one of the founders of Twitter) quickly did similar things. But then everything calmed down. Now, we have seen these companies ignite the spark , and not just in the U.S."

Pompliano listed a list of companies that have been buying Bitcoin to diversify their balance sheets, treating buying Bitcoin like buying U.S. Treasury bonds and gold.

Pompliano said, "Assuming 10% of U.S. corporate balance sheets have 1% invested in Bitcoin, this would be a significant buying power. Therefore, for an asset worth $1.2-1.3 trillion, you don't need that much buying power to continue driving it up. It is penetrating the public market."

Pompliano pointed out that there are reports that a large sovereign wealth fund may announce that it has included Bitcoin on its balance sheet.

Pompliano also discussed whether Bitcoin poses a threat to the U.S. dollar as the world's reserve currency. He stated that despite the increasing adoption of Bitcoin, the dollar and Bitcoin will coexist and appreciate simultaneously. He said, "Not only will the U.S. government not ban Bitcoin, the U.S. government needs Bitcoin. In fact, we have data showing that Bitcoin and the dollar continue to strengthen together."

The future will be challenging for other weak fiat currencies. He said, "(They) will be dumped in the international market. People will turn to Bitcoin and the dollar because their global accessibility has become so strong."