Anthony Pompliano, the well-known co-founder of the cryptocurrency asset management firm Morgan Creek Digital Assets, is out with an optimistic prediction. Specifically, Pompliano claims that the price of Bitcoin will reach $100,000 by the end of 2021.
Bitcoin to hit $100,000 by 2021?
This news came in a recent interview with BloxLive.tv, on the 2nd of July. Moreover, Pompliano foresees Bitcoin reaching this lofty price point due to supply and demand. According to Pompliano, “classic supply-demand economics” still hold true for the burgeoning asset class.
In addition to this, Pompliano also notes that Bitcoin’s upcoming halving – slated for May of 2020 – will continue Bitcoin’s appreciation. In fact, many raise the fact that future mining rewards will be cut in half as further driving Bitcoin’s market scarcity.
Furthermore, Pompliano also said that most institutional investors are unaware of Bitcoin’s halving. He went on to suggest that this could continue to drive the market’s appreciation of Bitcoin, in a “continuation of [the] trends we’re already seeing”.
These trends are mainly seen in the increasing crypto legitimization in countries around the globe. Moreover, the sector is already experiencing a notable influx of capital. What’s more, trading volumes are pushing record highs, and the financial climate is historically unstable.
Will Libra be a “gateway drug” for Bitcoin?
As such, Bitcoin – and crypto assets in general – represent a safer asset class than most observers realize, Pompliano argued. “Time is Bitcoin’s largest advocate,” he said.
Additionally, Pompliano also said he was 70% to 75% certain that Bitcoin will trade at a $100,000 level by 2021. Nevertheless, if these trends continue, Pompliano added that certainty level might well hit 90%.
“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.”
Pompliano also made some comments regarding Facebook’s upcoming cryptocurrency, Libra. He, like many others, said that Facebook’s entry into the sector is a bullish sign – as Libra can act as a “gateway drug” for cryptocurrencies in general. It remains to see whether or not this will be enough to realize Pompliano’s lofty $100,000 Bitcoin price prediction.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency 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.