Anthony Pompliano predicts bitcoin price will hit $100,000 by the end of 2021
The bitcoin price will soar to $100,000 in the next two and a half years. That’s the aggressive price target from Anthony Pompliano, co-founder and partner at Morgan Creek Digital.
During an interview with BloxLive.tv on July 2, he said the basic principle behind his forecast was classic supply-demand economics, still valid for the innovative digital asset class.
He said that one of the crucial greatest drivers of continued price appreciation will be bitcoin’s halving, when mining rewards will be reduced by half, in May 2020.
Meanwhile, most institutional investors aren’t even aware of this looming reduction in supply, he noted, suggesting that what will continue to drive the market from the perspective of sentiment will be a “continuation of trends we’re already seeing.”
These include increasing the legitimization of the space, inflows of institutional capital, record trading volumes, and a climate of global instability that promotes recognition of bitcoin as a safe haven asset.
If his prediction is correct, bitcoin would hit a $2 trillion market capitalization. That’s about a third of gold’s current market cap and 1/40 of the worldwide money supply. ‘Pomp’ cites a 70-75 percent conviction in his prediction:
“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 the question of legitimization, Pomp agreed with the notion that Facebook’s entry into the space with Libra is a bullish sign. “People may not like Zuckerberg, but no one thinks he’s dumb,” he quipped, proposing that:
“Bitcoin will benefit from libra being a “gateway drug” for cryptocurrencies.”
It’s not so much a question of the token itself, he noted, but the digital wallet that will be rolled out alongside it, which will be a fantastic on-ramp not only for Libra, but potentially in future also other cryptocurrencies, tokenized securities, and even data.