The cryptocurrency markets have already experienced significant turmoil in the past months. Anthony Pompliano, the founder of Morgan Creek Digital Assets, is – however – now suggesting that the price of Bitcoin could dip even further.
A dip below $3,000 would be an over 20% decrease
More specifically, Pompliano is proposing that the price of Bitcoin could go as low as below $3,000. This comes as Bitcoin is currently trading at $3,792 – meaning a fall below $3,000 would represent more than a 20% decrease.
Pompliano made these comments in a recent interview with CNBC on December 26th. This is not the first time that Pompliano has made a prediction on the performance of cryptocurrency markets, as he is known to be an avid crypto market commentator on social media.
In November, Pompliano predicted that the price of Bitcoin would fall to $3,000 – which is also something that subsequently happened. Even though the price of the premier cryptocurrency has since recuperated, this lends at least some credence to Pompliano’s latest guesstimate.
“Short term, I actually think we have lower to go [than $3,000],” Pompliano argued in the CNBC interview.
It should be noted, however, that the stock market has also experienced some turbulence during the past months. When confronted with a statement that Bitcoin’s recent performance could be correlated to that of traditional FAANG stocks (Facebook, Amazon, Apple, Netflix and Google), Pompliano denied that any such correlation existed.
Pompliano: Psychological components at play due to stock market turndown
Nevertheless, Pompliano ceded that the overall stock market could, in some way, have an effect on the price of Bitcoin.
“I definitely agree there are some psychological components at play as the stock market pulls down,” Pompliano continued. Even so, he went on to state that Bitcoin had “zero correlation” with the S&P 500, as well as a close-to-zero correlation with the dollar index.
This is not the first time in recent weeks that an analyst has posted a bearish outlook on the cryptocurrency market. The veteran trader Tony Vays recently suggested that Bitcoin could be about to experience a significant drop if it closed below its 50-month moving average.
However, it should similarly be highlighted that other analysts are bullish on Bitcoin’s outlooks for 2019. It is likely that this discrepancy between analysts somewhat stems from the turbulence recently experienced both by the traditional stock market and the cryptocurrency market. As always, it remains to be seen what comes of it.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.