Pomp Investments backer Anthony Pompliano asserts that Bitcoin will surpass gold in value eventually on the Making Money show.
Bitcoin recently underwent its fourth “halving,” with the price of the primary cryptocurrency remaining stable post-event. The cryptocurrency, which saw a peak of \(73,803 in mid-March, was trading at around \)64,036 before the halving took place at 8 p.m. ET on Friday. Following the halving, there was a slight 0.47% decline to \(63,747, but prices later climbed to approximately \)65,000 by Sunday.
The halving event impacts the rate of new bitcoin creation and was integrated into the cryptocurrency’s code from the beginning by its enigmatic creator, Satoshi Nakamoto, who limited the total bitcoin supply to 21 million tokens.
During a halving, the rewards miners receive for generating new tokens are halved, leading to increased costs for introducing new bitcoins into circulation.
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The recent bitcoin halving reduced the rewards for miners creating new tokens by half. (Timothy Fadek/Bloomberg via / Getty Images)
Halvings occur approximately every four years, with previous events taking place in 2012, 2016, and 2020. While some cryptocurrency enthusiasts anticipate price surges post-halving, analysts remain cautious.
JP Morgan analysts expressed skepticism, stating that they do not foresee significant price increases post-halving as the impact has already been factored in. They predict a potential decline in bitcoin’s price post-halving due to being “overbought” and subdued venture capital investments in the crypto sector this year.
Bitcoin’s recent surge to an all-time high followed a period of recovery in 2023 after a significant downturn in 2022, triggered by the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange. In November 2021, Bitcoin hit a record high of \(67,802 before dropping to below \)17,000 in November and December 2022.
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After a dip in 2022, Bitcoin prices have rebounded close to their previous highs. (Jakub Porzycki/NurPhoto via / Getty Images)
Despite warnings from financial regulators about the high-risk nature of Bitcoin and its limited real-world utility, more regulatory bodies have approved products linked to Bitcoin trading.
In January, the Securities and Exchange Commission (SEC) greenlit several spot bitcoin exchange-traded funds (ETFs), broadening investors’ access to the cryptocurrency without the need to purchase tokens through a crypto exchange.
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The SEC sanctioned multiple spot bitcoin ETFs in January. ( / iStock)
Spot bitcoin ETFs enable investors to efficiently monitor the cryptocurrency’s price and invest in the asset by acquiring ETFs through their brokerage accounts.
Approved bitcoin ETFs include offerings from ARK/21Shares (ticker symbol ARKB), Bitwise (BITB), BlackRock (IBIT), Fidelity (FBTC), Franklin Templeton (EZBC), Grayscale (GBTC), Invesco/Galaxy Digital (BTCO), Valkyrie (BRRR), VanEck (HODL), and WisdomTree (BTCW).
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Bitcoin prices have shown relative stability in recent weeks post reaching a new peak in March amidst geopolitical tensions and expectations of prolonged higher interest rates by central banks due to persistent inflation.
FOX Business’ Suzanne O’Halloran and Reuters contributed to this report.