Co-founder and partner of Morgan Creek Digital Anthony Pompliano has always been a major bitcoin bull. He’s recently emerged to let all traders know that he thinks bitcoin could potentially reach a price of around $100,000 by next year.
Anthony Pompliano: As Confident As Ever in BTC
2020 has been rocky from the start, but to say it hasn’t been kind to bitcoin would be a huge falsehood. The world’s number one cryptocurrency by market cap has seemingly surged by more than 160 percent since the beginning of the year when it was first trading for around $7,000.
From there, the currency experienced some major pitfalls thanks to the coronavirus after spiking all the way to $10,000, though things eventually revamped themselves for the coin and the asset jumped back to five-figure territory in July. Bitcoin has been on a solid bull run ever since, and the currency recently rose beyond the $19,000 mark, coming within inches of the all-time high it first attained in late 2017.
In a recent interview, Pompliano shared his thoughts on bitcoin’s present level of momentum, and he’s confident things will continue in this manner for some time. He explained that the currency’s demand far outweighs its supply, which will eventually play into the asset’s hands and make it far more valuable.
Bitcoin is the winner of a supply and demand exercise.
Some of the elements that have pushed this demand over supply is the fact that bitcoin experienced its third halving in early May. While the event was rather lackluster and didn’t amount to any serious visible results, the currency’s reward supply for miners was cut in half, resulting in a stronger level of rarity for the world’s number one digital asset.
From there, the world was privy to heavy money printing, low interest rates and high inflation, which has pushed back the value of the U.S. dollar and other forms of fiat. All this, Pompliano states, has helped carve out a path for bitcoin to explode. He explains:
I don’t think it’s that crazy to see a $100,000 bitcoin price by the end of 2021, and if we continue to get bigger and bigger buyers… if this kind of tips over and all of the sudden, it becomes a kind of consensus trade, it wouldn’t surprise me to see something even higher.
A Few Concerns?
While he’s confident bitcoin will remain in a bullish state over the next year or so, Pompliano also mentioned a few risks presently associated with the rising asset. He comments:
The first thing is a self-inflicted wound. If there’s a bug introduced into the code or something like that. The second thing would be some sort of geopolitical risk where we saw a really aggressive and coordinated kind of action by multiple nation states.