Anthony Pompliano has shared his 2022 crypto outlook

Anthony Pompliano, one of the Bitcoin bulls has recently shared his crypto outlook for the year 2022. He is the co-founder of Morgan Creek Digital, and believes higher interest rates in 2022 may have a different impact on the flagship cryptocurrency’s price than what many analysts assumed in the initial stage. Recently, in an interview with CNBC, he underscored that Bitcoin could potentially be correlated to surprising indicators.

Anthony Pompliano provided some indications

According to Anthony Pompliano, there is one thing he is watching and don’t think that he has enough data yet. However, he highlighted that over the past few weeks he noted a couple of analysts talking about the idea that the BTC price is actually correlated to the United States 10-year Treasury gains.

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Indeed, Traders track the performance of the 10-year Treasury yield to gauge investors sentiment and risk appetite. Moreover, skyrocketing yields suggest market confidence as investors opt for risk-on assets that harvests higher returns.

On the other hand, a declining yield signals market cautions as investors flee to Treasury bonds. Such steps help the traders to protect their capital.

FED official indicated interest rate plans

Officials from the United States FED have recently signaled some plans to scale back asset purchase. Simultaneously, they will be raising interest rates next year in an effort to fight inflation.

Following the indications, Anthony Pompliano noted that if the correction between the gains and BTC holds true, such a policy could actually be bullish for the coin designed by Satoshi Nakamoto.

Furthermore, he explained that now we would think that most risk assets, as the interest rates soar, we should seek to sell off. Hence, we should go all the way back to the 99.com Bubble, and observe how a lot of individuals point to interest rates being a key factor for that kind of fuel.

However, if the flagship cryptocurrency is actually going to trade alongside the FED yield, we need more data. And if the scenario is positive in some crazy way, raising interest rates could be bullish for the coin.

18-month timeframe seems off

Anthony Pompliano observed that few of his past predictions have not come true. Indeed, in 2019, he predicted that BTC would hit $100k by the end of last year. However, he explained that one of the notable things is that the 18-month timeframe may be off. Hence, we might witness a longer bull market now rather than those 18-month ones the market has seen before. Ultimately, time will tell Hindsight will be 20/20 on that, but it is a significant point to keep eye on.