Anthony Pompliano of Morgan Creek Digital is the latest industry notable to call a price target of $100,00 for bitcoin, which he expects to be hit before the end of 2021.
‘The Pomp’, as he is known in crypto circles, correctly predicted that bitcoin would bottom in the $3,000s before rising again.
“This prediction of a ~50% drop in Bitcoin’s price was met with plenty of skepticism, but it ultimately proved to be accurate. Bitcoin proceeded to drop under $3,200 in December 2018 before recovering and shooting past a $10,000 price this past Friday.”
Now he is targeting $100,000 by end 2021 on the basis of “supply/demand economics”, with demand increasing and supply contracting.
Demand-side pressures “include 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”.
And on the supply side, block rewards are halved in May 2020.
The Pomp assigns a “70-75%” confidence level to his prediction.
And just in case you didn’t know that crypto investing is risky. The Pomp provides the following reminder of the volatility of the asset class
“An investment in Bitcoin will deliver approximately a 10x return if I am correct in my $100,000 price target, while the risk is a complete loss of invested capital (-1x).”
Bitcoin to add “trillions in value” says Clem Chambers
There is more bullish optimism in evidence on the other side of the pond.
Bitcoin is set to add “trillions in value” to the global economy says Clem Chambers, chief executive of Online Blockchain plc, which trades on London’ Stock Exchange’s Alternative Investment Market.
“This is no difference to the rally and bubble of 2017. In both cases it is driven by the blockchain revolution set to add trillions in value to the world economy,” says Chambers.
Bitcoin, traded as high at 11,150 over the weekend, with multiple analysts predicting the price could reach new all-time highs.
Chambers agrees: “There will be cycles of boom, bubble and bust and this is another boom/bubble part of that. How high it goes this time is anyone’s guess but mine is above the previous high.”
Chambers provides some perspective as FOMO threatens to reappear in the crypto markets:
“The whole cryptocurrency space is still only the size of a single Nasdaq blue chip so there is a long way to go yet,” he points out.
CNBC Squawk Box anchor Kernen turning into bitcoin (BTC) true believer?
And the crypto penny seems to be dropping in some unexpected quarters.
Joe Kernen, the anchor of CNBC’s Squawk Box, put it like this in conversation with one of his guests.
Corporation get all the float. Fiat is currency for governments, libra is currency for corporations. Only bitcoin is currency for the people. I’m feeling like an evangelist almost. Who put facebook in charge of giving currency to the rest of the world… who anointed them. That would be the last person I’d give the keys to.