The Cofounder of crypto asset management Morgan Creek, Anthony Pompliano has come up with yet another bold crypto prediction. This time he predicts that BTC will hit $100,000 by the end of 2021.
In an interview with Bloxlive.tv on July 2, he said the basic principle behind his forecast was not just random or idle speculation but classic supply-demand economics, still valid for the innovative digital asset class. According to Pompliano or Pomp as he is popularly known as on Twitter, one of the largest drivers of continued price appreciation will be Bitcoin’s halving, when mining rewards are reduced by half which will be in May 2020.
He noted that most institutional investors weren’t even aware of this looming reduction and added that the market will keep being on the ascendancy since its drivers will be based on sentiment which will be “a continuation of trends we’re already seeing”. These trends include; inflows of institutional capital, legitimization of the crypto space, record trading volumes, and the recognition of Bitcoin as a safe-haven asset.
According to Pomp; “Time is Bitcoin’s greatest advocate,” and according to him, as these trends continue, his current 70-75% confidence level in $100,000 by 2021 will hit 90%. Pomp went on to discuss how he had accurately predicted the disastrous BTC price slump that saw it sink from $10,000 to $3,000. He now believes that his $100,000 BTC price prediction by 2021 will not just be a prediction, and the markets will surely oblige.
“In August of last year I predicted Bitcoin would go down to $3,000 before returning to $10,000. It essentially did that now I think it’s going to $100,000, but there will be more volatility: there will be parabolic runs like we saw in June and then there will be 20-30% drawdowns from that. Along the way a lot of people will call the top at these local highs they’ll be incorrect.”
Elaborating on legitimization, pomp agreed with the notion that Facebook’s entry into the space with the Libra coin is a Bullish sign, adding that “People may not like Zuckerberg, but no one thinks he’s dumb,” Pomp’s thoughts on Facebook’s Libra are aligned to those of Bitmex CEO Arthur Hayes who believes Libra will majorly disrupt the financial markets as we know them. On the relation between Libra and BTC, Pomp added that “Bitcoin will benefit from Libra being a “gateway drug” for cryptocurrencies.”
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