Bitcoin ETFs Post Five-Day Outflow Streak
US spot Bitcoin ETFs have seen their longest period of outflows in four months, with crypto entrepreneur Anthony Pompliano arguing that Bitcoin may be undervalued.
Spot Bitcoin ETFs have seen about $1.17 billion in outflows over the past five trading days, the longest stretch of outflows since a seven-day slide in April, when Bitcoin traded around $79,625, according to data from Farside and CoinMarketCap.
Pompliano told CNBC on Thursday that Bitcoin is likely currently undervalued. It was trading at $112,870 at press time.
Bitcoin Prepares for Period of Active Buying
“At current levels in the $112,000-$113,000 range, Bitcoin looks quite oversold,” Pompliano noted.
He added that Bitcoin's oversold signals, coupled with the approach of September and October – the periods following the halving in April 2024 – could indicate the asset is ready for growth.
Bitcoin has fallen 4.98% in the last 30 days. Source: CoinMarketCap
“In September, people return to active work after the summer period, which usually leads to an increase in trading activity,” he explained.
It's been just over a week since Bitcoin hit a new all-time high of $124,128 on August 14.
According to CoinGlass data, Q3 traditionally shows the weakest results for Bitcoin with an average return of just 6.02%, while Q4 is the strongest with an average gain of 85.42%.
Pompliano argues that the expectation of a repeat of a historical pattern could spur buying.
“If investors believe that the end of Q3 and the beginning of Q4 are a favorable period for Bitcoin, they start to act accordingly,” he said.
Pompliano Doubts Bitcoin's Rise to $1M This Cycle
While Pompliano expects Bitcoin to rise by the end of the year, he doubts the asset will reach $1 million in the current cycle, although he believes it is possible in the future.
He added that speculation around the expected rate cut by the US Federal Reserve on September 17, as well as treasury companies raising additional funds to buy Bitcoin, could increase demand for the asset.
“Bitcoin will definitely reach a million dollars at some point in the future, but it's unlikely in this cycle,” Pompliano said.
Pompliano's prediction comes a day after Coinbase CEO Brian Armstrong said he “guessed” Bitcoin could reach $1 million by 2030.
Source: cryptonews.net
