Anthony Pompliano: "Bitcoin is likely to hit $100,000 by December 2021"

24 Jun, 2019 | Updated: 24 Jun, 2019
by Will Heasman
Price Analysis
Anthony Pompliano: Bitcoin is likely to hit $100,000 by December 2021

In his latest newsletter, Bitcoin bull and partner at Morgan Creek capital, Anthony “Pomp” Pompliano, has offered a new price prediction for Bitcoin: stating that the #1 cryptocurrency is likely to hit $100,000 by December 31st, 2021, here's why:

The newsletter which is usually reserved for Morgan Creek clients starts off with another prediction, this time one that Pomp made back in August 2017, when Bitcoin was trading at 6,770. Pomp warned his clients that Bitcoin was likely to dip to 3k before heading back up to 10,000 -  a prediction that would make Nostradamus proud.

However, far from bragging about his past victories, Pomp simply makes the point that it is his job “to have an opinion about where the market is going and to act accordingly.”

With that in mind, the money manager states that he believes Bitcoin will reach a “$100,000 price point before December 31, 2021,” adding, that his current confidence level of this happening is “around 70-75%.”

 The road ahead

Elaborating upon this prediction for this, Pomp first caveats that Bitcoin - being as volatile as it is prone to be - won't go from $11k to $100k easily, and will likely experience “numerous 20-30% drawdowns from new all-time highs” along the way.

 “These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time,” Pomp explains. 

The asset manager also notes that a “variety of ‘experts’” will attempt to “call the top” of the bull market; Pomp suggests that there is a “low probability” of any of them getting it right.

Multiple propellents 

As for the catalyst, the Bitcoin bull believes that appreciation will be driven by the principle of supply and demand, specifically alluding to the upcoming Bitcoin halving in 2020:

“supply/demand economics remains a valid market price determinant. Bitcoin is a fixed supply asset with a disinflationary supply schedule. Over the next ~2.5 years, there will be incredible increases in demand … while the total supply remains fixed and the new daily supply is decreased by 50% (starting May 2020).”

Pomp finally notes that the demand increase will come from a multitude of factors including “large scale institutional adoption, multiple ETF and retail product approvals, increased global instability, lack of performance in traditional markets, and the continued manipulation of markets, economies, and currencies by governments around the world.”

In addition, pomp suggests that the market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000,  asserting that this is “less than 1/3 the market cap of gold and less than 1/40 the global money supply.”

In conclusion, Pomp relays that an investment in Bitcoin will deliver a 10x return if his prediction rings true.

 Is this viable? 

While $100k seems like a lifetime away, it's perhaps closer than you may think. Right now bitcoin is enjoying a 190% year to date high, within the space of just 6 months, if this level of progress continued into the end of 2021, we could roughly expect a 1200% increase from now until then, giving a projected BTC price of $143,000.

What do you think? Will we see $100k by 2021? Let us know your thoughts in the comments!

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