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- Bitcoin could reach $ 100,000 by the end of 2021, according to crypto investor Anthony Pompliano.
- Pompliano, co-founder of Morgan Creek Digital, told CNBC on Wednesday that demand for Bitcoin was rapidly outstripping supply and that the low interest rate macroeconomic environment was ‘rocket fuel’ for the price of cryptocurrency. .
- “I don’t think it’s that crazy to see a $ 100,000 bitcoin price tag by the end of 2021,” Pompliano said. “And if we keep having bigger and bigger buyers … if that kind of seesaw and all of a sudden it becomes kind of a consensus, it wouldn’t surprise me to see something even higher than $ 100,000. “
- Watch Live Bitcoin Trading Here.
Bitcoin could reach $ 100,000 by the end of 2021, according to crypto investor Anthony Pompliano. The coin traded as high as $ 19,389 on Wednesday and is nearing its all-time high, reached in 2017.
Pompliano, co-founder of Morgan Creek Digital, told CNBC on Wednesday that demand for the coin was rapidly exceeding supply, especially after it was “cut in half” in May, when the number of bitcoins allocated to miners was cut in half . This happens about every four years and serves to limit the supply of bitcoin entering the market.
Bitcoin is “the winner of a supply and demand exercise,” Pompliano said.
Pompliano added that the current macroeconomic environment is “rocket fuel” for Bitcoin. Low interest rates, money printing, and the Federal Reserve’s average 2% inflation target have pushed retail and institutional investors to turn to Bitcoin, he said.
The investor also said that Janet Yellen, President-elect Joe Biden’s choice for Treasury Secretary, was “notorious” for tolerating higher levels of inflation and that this could also drive up the coin’s price.
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“I don’t think it’s that crazy to see a $ 100,000 bitcoin price tag by the end of 2021,” Pompliano said. “And if we keep having bigger and bigger buyers … if that kind of seesaw and all of a sudden it becomes kind of a consensus, it wouldn’t surprise me to see something even higher than $ 100,000. “
Bitcoin has jumped about 160% this year as more investors and major institutions recognize cryptocurrency’s legitimacy as a store of value. Billionaire hedge fund manager Stanley Druckenmiller told CNBC earlier this month that he owned a “tiny bit” bitcoin as a hedge against inflationary pressure, while venture capitalist Chamath Palihapitiya said in February that every citizen should hold 1% of its assets in bitcoin because it’s a ‘fantastic hedge’.
Despite his bullish outlook, Pompliano shared two potential risks he sees for Bitcoin.
“The first thing is a self-inflicted injury, right, if there’s a bug introduced in the code or something,” he says. “The second thing would be some kind of geopolitical risk where we saw some kind of really aggressive coordinated action on the part of multiple nation states.
“But again, I think these things have a very low probability of happening, so it doesn’t really look like it will happen in the short term.”
Morgan Creek Digital of Pompliano is an investment firm that helps public pensions, university endowments and private foundations invest in blockchain technology.
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