Founder and CEO of Professional Capital Management Anthony Pompliano has emphasized the importance of Donald Trump setting up a national Bitcoin (BTC) reserve. The entrepreneur has also shared some thoughts on the selection of the next SEC chairman which may hold more weight for altcoins than Bitcoin.

There’s A Global Race Underway For Bitcoin – Pompliano 

In a recent interview with Yahoo Finance, Anthony Pompliano commented on the crypto market’s buoyant reaction to Trump’s electoral victory. 

According to Pompliano, investors believe the Republican President-elect and are highly confident in his willingness to implement all crypto-related manifestos. He explains that this belief is backed by recent price surges as investors are getting into positions and allocating resources to enjoy the benefits of Donald Trump’s promised crypto-friendly administration.

Anthony Pompliano states it is vital the incoming US President sticks to his words, especially in regard to the national Bitcoin reserve. In this regard, he highlights that it is not only important the US retains its current Bitcoin tokens, but also actively acquires more of the crypto.

According to Pompliano, this buying strategy is needed as there is a global race for Bitcoin at the moment, which is proving to be a strong hedge against inflation. Therefore, the US local, state, and federal governments must aim to get involved and acquire as many Bitcoins as possible. 

Just like Bhutan with a $1 billion BTC sheet, Pompliano is urging Trump to follow suit but on a larger scale of $100 billion BTC which he claims is small compared to the US national spending.

Pompliano: No Preferred Candidate For New SEC Chair

When commenting on Donald Trump’s appointments, Anthony Pompliano has stated he has no favorite candidate to be chairman of the US Securities and Exchange Commission (SEC). 

With Gary Gensler’s hectic regime approaching a fast end, the boss at Professional Capital Management states the new SEC Chair must be “smart, prudent and pro-crypto”. 

Interestingly, Pompliano also aligns with the interviewer’s sentiments that this new appointment and the SEC’s policy moving forward will hold more regulatory implications for altcoins than Bitcoin. He explains that Bitcoin, while being the king of the crypto market, has already gained enough regulatory clarity, same with Ethereum. Therefore, altcoins especially those with ETF applications such as Solana are set to gain from any improved regulatory system.

At the time of writing, Gary Gensler’s replacement remains unknown with multiple candidates reportedly in consideration. These candidates include Wall Street lawyer Richard Farley, Robinhood Chief Legal Officer Dan Gallagher, former SEC Commissioner Chris Giancarlo, and former SEC General Counsel Robert Stebbins among others.

Featured image from IQ.wiki, chart from Tradingview

MicroStrategy’s decision to shift from traditional cash reserves to Bitcoin has reshaped its financial profile, catapulting the company into the spotlight as a leader in digital asset adoption.

This transformation coincides with Bitcoin’s recent surge to unprecedented price levels, significantly boosting MicroStrategy’s standing in corporate financial rankings.

Bitcoin-Focused MicroStrategy Outshines IBM and Nike in Asset Reserves

The company’s Bitcoin stash, now valued at approximately $26 billion, reportedly surpasses the cash and liquid assets held by giants like IBM, Nike, and Johnson & Johnson. For comparison, CompaniesMarketCap data shows that Nike’s reported cash and securities totaled $10.9 billion as of August, while IBM held $13.7 billion. Johnson & Johnson’s latest quarterly figures listed $20.29 billion.

This financial position shows that the niche software provider has redefined its identity by embracing Bitcoin as a core financial asset. However, despite this impressive position, MicroStrategy still trails around 14 companies, including Apple and Alphabet, in terms of corporate treasury assets.

The company began acquiring Bitcoin in 2020 as a countermeasure against inflation and declining revenue growth. Initially funded through operational cash flow, these purchases expanded to include capital raised via stock sales and convertible debt issuance.

To date, MicroStrategy has amassed 279,240 BTC at an average acquisition cost of $42,888, with a total investment of roughly $11.9 billion. This positions the firm as the largest publicly traded Bitcoin holder, controlling around 1.3% of the cryptocurrency’s total supply.

What initially faced skepticism has now become a major draw for investors seeking indirect exposure to Bitcoin. The shift in sentiment has propelled MicroStrategy’s stock by over 2,500% since 2020. This aligns with Bitcoin’s remarkable 700% price growth during the same timeframe.

Currently, the unrealized profit of MicroStrategy’s Bitcoin holdings stands at $13.4 billion, representing a 112% increase. The firm’s Bitcoin yield — measuring the relationship between its Bitcoin holdings and outstanding shares — has risen 26.4% year-to-date.

However, MicroStrategy’s executive chairman, Michael Saylor, remains steadfast in the company’s Bitcoin-centric vision. The firm plans to raise $42 billion over the coming years to expand its Bitcoin holdings further. Meanwhile, MicroStrategy aims to transform into a trillion-dollar Bitcoin bank, solidifying its role as a pioneer in corporate Bitcoin adoption.

Many analysts aren’t surprised by the recent price surge of Bitcoin to $80,000, given Donald Trump’s convincing victory in the recently concluded US national elections.

Some market analysts and observers offer even bolder projections, fueled by rumors of a Bitcoin strategic reserve and the possible approval of the Bitcoin Law.

Trading firm QCP is one of those analysts taking a bullish stance on the crypto, predicting that the top digital asset will break $120,000 soon.

QCP cites the administration of incoming President Donald Trump, the plan to create a strategic BTC reserve, and updated US inflation data as critical drivers for the asset’s price.

Favorable Market Conditions Boost Bitcoin Price

Bitcoin’s price surge continues this week, hitting another all-time high of $93,120, boosting the global cryptocurrency market cap to over $3 trillion.

The rally comes as the US government released its inflation data, with headline and core inflation numbers at 2.60% and 3.30%, respectively, in line with expectations.

Also, analysts are confident of a potential 25 basis point rate cut from the December Federal Open Market Committee meeting. Many say that a shift in monetary policy boosts optimism among risk-based assets, including Bitcoin.

$100k To $120k For BTC Possible, Says QCP

In the Twitter/X post, QCP Trading predicts that Bitcoin can hit $100k to $120k. The post added that BTC price action benefits from proposals to create a BTC strategic reserve and the government’s potential shift from gold to digital asset.

QCP: In view of Bitcoin’s impressive rally since the US election, our view is that $100,000 – $120,000 may not be too far off. Trump idea of launching a strategic BTC reserve and rotation from Gold to BTC, provides a strong narrative that keeps BTC prices supported.…

— Wu Blockchain (@WuBlockchain) November 15, 2024

However, QCP cautions the industry about excessive leverage in altcoins. It added that perpetual funding rates have increased between 50% and 100%, primarily due to heavy-leveraged buying.
This scenario increases the risk of a deleveraging event, putting downward pressure on prices.

Other Analysts See Continuous BTC Price Surge

Aside from QCP, several other analysts and financial institutions are examining Bitcoin’s bullish trend. Matthew Sigel of VanEck is also optimistic about the direction of digital asset prices.

Bitcoin’s price has increased by 30% since the elections, and based on VanEck’s proprietary indicators, the trend is likely to continue.

Sigel also noted the market’s favorable sentiment on Bitcoin, thanks to the re-election of Trump and other crypto-friendly personalities. Based on VanEck’s projections, the alpha coin can top $180k by next year.

Rekt Capital echoes VanEck’s outlook, suggesting that the asset has entered a “parabolic upside.” The market analyst further stated that this stage can last up to 385 days, creating plenty of opportunities for traders and investors to profit.

Featured image from Pexels, chart from TradingView