U.S. spot Bitcoin ETFs have just recorded their longest stretch of outflows in more than four months, but crypto investor Anthony Pompliano believes the asset may now be oversold.
Data from Farside and CoinMarketCap shows that spot Bitcoin ETFs shed roughly $1.17 billion over the past five sessions — the steepest run of outflows since April, when Bitcoin was hovering near $79,625 during a seven-day losing streak.
Speaking on CNBC Thursday, Pompliano argued that Bitcoin appears undervalued at current levels. At the time of writing, it was trading around $112,870.
Pomp Says Bitcoin Entering Stronger Buying Phase
“At around $112,000 to $113,000, Bitcoin looks significantly oversold,” Pompliano said. He noted that oversold signals, combined with the seasonality of September and October in the post-halving year, suggest the asset may be poised for an upward move.
“September brings more activity, with investors back at their screens, unlike in August,” Pompliano said.
Just over a week ago, Bitcoin hit a new all-time high of $124,128 on Aug. 14.
Historically, Q3 has been Bitcoin’s weakest quarter, averaging a modest 6.02% return since 2013, while Q4 has been its strongest, delivering an average gain of 85.42%, according to CoinGlass.
Pompliano noted that expectations themselves can drive momentum: “If people believe the end of Q3 and the start of Q4 are strong periods for Bitcoin, they begin to act accordingly.”
Pompliano Skeptical of $1M Bitcoin in Current Cycle
While Pompliano expects Bitcoin to strengthen toward the end of the year, he said it’s unlikely to reach $1 million in the current cycle—though he believes it could get there in the future.
He pointed to growing speculation around the Sept. 17 U.S. Federal Reserve rate cut, as well as treasury firms raising capital to purchase Bitcoin, as potential drivers of demand.
“Bitcoin will definitely reach one million eventually, but in this cycle, it’s very unlikely,” Pompliano said.
His comments came just a day after Coinbase CEO Brian Armstrong suggested he has a “rough idea” that Bitcoin could hit $1 million by 2030.
