Bitcoin (CRYPTO: BTC) remains positioned for a comeback despite a sluggish two-year stretch, according to ProCap CEO Anthony Pompliano, who argues that continued fiscal stimulus will keep driving capital toward hard assets.

Why Bitcoin Has Struggled

In a CNBC Squawk Box interview on Thursday, Pompliano said investors are frustrated because Bitcoin has lagged while stocks, especially AI-linked names, have captured momentum.

"The AI trade is really sexy," Pompliano stated. “People like the shiny thing, the thing that's going up."

Pompliano attributed Bitcoin's recent underperformance to several factors:

  • Traders chasing AI and semiconductor momentum
  • Wall Street taking a larger role in Bitcoin price discovery
  • Bitcoin maturing as an asset
  • Volatility compressing as market size grows

Investors should not expect Bitcoin to repeat its early-cycle behavior when it could surge 20x in a year before crashing 80%.

"Bitcoin is bigger, volatility is compressing," Pompliano said.

Bitcoin, Gold And Money Printing

Pompliano compared Bitcoin to gold, arguing both assets benefit when governments expand the money supply.

Investors have long been taught that productive assets like stocks should outperform commodities, but in a post-financial-crisis world, hard assets have gained as the government continues “printing money,” according to Pompliano.

"If the U.S. government does not stop printing money, Bitcoin at some point in the future is going to be back," he said.

Pompliano added that Bitcoin's long-term upside remains tied to dollar debasement: "Bitcoin has no top because the dollar's got no bottom."

$1 Million Bitcoin?

Pompliano maintains Bitcoin can eventually reach $1 million but warned that timing remains the hardest part of any long-term price forecast.

He said Bitcoin could reach that level in five years or 40 years but expects the asset to move "significantly higher" over time:

"Picking price is the easy part. The timeline is always the hardest part."

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