Anthony Pompliano predicts bitcoin growth to $ 100,000 by December 31, 2021
Morgan Creek Digital co-founder Anthony Pompliano, in the last issue of his message to clients, gave a forecast for the bitcoin rate for the next two and a half years. According to Pompliano, the price of the cryptocurrency will reach the level of $ 100,000 by December 31, 2021 with a probability of 70-75%.
The analyst draws attention to the fact that bitcoin is characterized by high volatility, therefore, he recommends not counting on a rise from $ 11,000 to $ 100,000 without manifestations of this feature..
“I expect many drops of 20-30% from new all-time highs as the asset’s value rises. These miniature boom and bust cycles should not cause panic, but should be seen as the natural dynamics of an asset market that skyrockets in value over a short period of time, ”writes Pompliano..
In his opinion, the rise in the exchange rate “will be caused by a very simple idea – the economy of supply and demand remains a decisive factor in determining the market value.” “Bitcoin is an asset with limited supply and a deflationary structure. Over the next 2.5 years, demand will increase strongly, while the total supply will remain limited, and new emissions will be reduced by 50% in May 2020 “.
Pompliano expects demand for bitcoin to be driven by “various sources and factors”, including the proliferation of cryptocurrency at the institutional level, the approval of ETFs and a variety of products targeted at retail investors, worsening global volatility, weak traditional market performance and economic manipulation.
At $ 100,000, Bitcoin will have a capitalization of over $ 2 trillion. “This is less than a third of the market capitalization of gold and the fortieth part of the global money supply,” he adds..
“I am not aiming for 100% accuracy. It is enough to make correct predictions more often than wrong ones. This is our job. The investment in bitcoin will multiply approximately 10 times, if I’m right. You also run the risk of completely losing your invested capital “, – the analyst concludes.
Last August, Pompliano gave a forecast, which later turned out to be quite accurate, that Bitcoin could fall to $ 3,000 in the short term..
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