"Buy when ignored"...Pompliano activates contrarian investment scenario for Bitcoin

▲ Bitcoin (BTC)

As Bitcoin (BTC) is being overlooked amidst the artificial intelligence (AI) craze and stock market rally, Anthony Pompliano argued that this very period of being ignored could be an opportunity for contrarian investors.

According to cryptocurrency media outlet Benzinga on May 29 (local time), Anthony Pompliano, CEO of Professional Capital Management, compared the recently underperforming Bitcoin to a “dog with fleas” in an interview on CNBC Squawk Box. Pompliano mentioned that AI-related stocks are soaring and investors are chasing that trend, suggesting that one should instead look at assets that are being ignored by the market.

Pompliano stated, “What you usually want to buy are assets that are being ignored, and they can regain attention over time.” He argued that as long as the U.S. government continues to print fiat currency, Bitcoin’s potential for a rebound remains high. This effectively sees the decline in dollar value as the core of the long-term bullish thesis.

Pompliano also maintained his previous forecast that Bitcoin could reach $1 million in the long term. However, he pointed out that timing is more difficult than the long-term price target. He has also emphasized the importance of holding gold as a means to hedge against the depreciation of the dollar.

On the other hand, Benzinga noted that Bitcoin has recently diverged significantly from major global assets. The Nasdaq Composite, S&P 500, and gold have shown strong returns over the past year, but Bitcoin has fallen by more than 30% during the same period. Benzinga assessed this trend, stating that Bitcoin has failed to act as both an inflation hedge and a beneficiary of the risk-on asset bull market.

Market commentator Bull Theory described Bitcoin’s decoupling as “either something is broken at the core of the crypto market, or it’s the largest organized manipulation in history.” As Pompliano’s contrarian buying thesis clashes with structural distrust within the market, investors’ views on Bitcoin are once again becoming extremely polarized.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*