US-based spot Bitcoin ETFs have posted their longest run of outflows in over four months, though crypto entrepreneur Anthony Pompliano says that Bitcoin’s price may now be oversold.
Over the past five trading days, spot Bitcoin (BTC $113,222) ETFs have seen about $1.17 billion in outflows, representing the longest streak since a seven-day outflow period in April when Bitcoin was trading near $79,625, according to Farside and CoinMarketCap.
Pompliano said on CNBC on Thursday that Bitcoin is likely undervalued now. It was trading at $112,870 at the time of writing.
Bitcoin headed to a more active buying period: Pomp
“Right now at 112, 113,000, it is pretty oversold,” Pompliano said. He said that Bitcoin’s oversold signals, along with Bitcoin approaching September and October, in the year following the April 2024 halving, could indicate the asset’s price is ready to move higher.
Bitcoin is down 4.98% over the past 30 days. Source: CoinMarketCap
“People are in front of their screens in September, they are not in front of their screens in August, so people are buying and being more active,” he said.
It is just over a week since Bitcoin reached new all-time highs of $124,128 on Aug. 14.
Since 2013, Q3 has been Bitcoin’s weakest quarter on average, returning just 6.02%, while Q4 has been the strongest, averaging an 85.42% gain, according to CoinGlass.
Pompliano says that when people expect history to repeat, it can help encourage buying.
“If people believe that the end of Q3 and the beginning of Q4 is a good time for Bitcoin, people start to act in a way,” he said.
Pompliano doubts $1 million Bitcoin this cycle
Although Pompliano expects Bitcoin to pick up toward the end of the year, he said he doubts it will hit $1 million in this cycle, though it may in the future.
He added that speculation around the highly anticipated Sept. 17 US Federal Reserve rate cut, along with treasury firms raising more funds to buy Bitcoin, could increase demand for Bitcoin.
“Bitcoin will definitely go to one million at some point in the future, but I just think this cycle it is very unlikely that it is going to go to a million dollars,” Pompliano said.
Pompliano’s prediction came just a day after Coinbase CEO Brian Armstrong said he had a “rough idea” that Bitcoin should reach $1 million by 2030.