Bitcoin [BTC]: A perfect storm could be brewing for the king coin, claims Anthony Pompliano

As Bitcoin continued to chase the $9,000-mark, proponents of the space have put forward many speculations regarding the king coin’s explosion and subsequent takeover of legacy institutions. The coin’s resurgence and present-day market characteristics suggest a perfect storm could be brewing for Bitcoin, according to one such proponent.

Recently, while speaking to Bloomberg TV, Scott Mather, Chief Investment Officer of US Core Strategies at PIMCO, stated that the current credit market is headed for a crash and is the riskiest credit market in terms of size, duration, quality and lack of liquidity.

The officer’s comment that central banks have been “powerful” in terms of “taking the volatility out of the market” and consequently pumping the prices of assets, caught the attention of a prominent figure in the crypto-world.

In a recent Off The Chain podcast edition, the co-founder of Morgan Creek Capital, Anthony Pompliano aka Pomp wrote about Bitcoin’s increasing prospects as the king coin continued its rally. According to him, traditional markets were “getting scarier by the day”.

Pomp asserted that interest rate cuts and quantitative easing tools that were previously available to central banks for addressing “potential recessionary periods” are now considered “ineffective by the people”. He said,

“With the current interest rates, we would not be able to cut the 500+ basis points that have been cut in the last two bear markets.”

Additionally, Pomp also noted that fiat is being printed at an alarming rate, further “softening” the impact of these tools.

The BTC enthusiast speculated that central banks would be forced to make hard decisions in the first half of 2020 which, according to Pomp, would coincide with Bitcoin’s scheduled halving. A potential scenario would be the slashing of interest rates, explosion of fiat printing, and Bitcoin getting scarce all around the world at the same time, Pomp claimed. He added,

“.. this is like taking a forest fire and accidentally dropping thousands of gallons of gasoline on it, instead of dropping water. Whoops!”

However, Pompliano conceded that the outcome of this scenario would hurt the average American and people around the world. Pomp concluded,

“Hopefully it won’t come to fruition, but unfortunately I don’t think we have anyone awake at the wheel to stop it.”

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