Bitcoin Could Soar to $100,000 by the End of This Year
Bitcoin could surge to $100,000 by the end of 2021, according to Anthony Pompliano.
- Pompliano, in an interview with CNBC, said that the Bitcoin supplies are limited, but the demands are rapidly increasing, exceeding the supply. He added that this macroeconomic environment of low-interest rates was 'rocket fuel' for Bitcoin's price.
- "I don't think it's that crazy to see a $100,000 bitcoin price by the end of 2021," Pompliano said. "And if we continue to get bigger and bigger buyers ... if this kind of tips over and all of a sudden it becomes kind of a consensus trade, it wouldn't surprise me to see something even higher than $100,000."
According to crypto investor Anthony Pompliano, the 'king of cryptocurrencies' Bitcoin could soar to $100,000 by the end of 2021. The coin today has a market cap of around $1,018 billion, and it has hit an all-time high of $58,330.57 as of February 21, 2021.
Anthony Pompliano is the co-founder of Morgan Creek Digital, an investment firm that helps public pensions, university endowments, and private foundations invest in blockchain technology. He briefed about the increasing demand for the coin and how it is rapidly outpacing its supply during a talk with CNBC.
He noted that this happened specifically after the 'halving' that happened last May when the number of Bitcoins accorded to miners was cut in half. To limit the supply of Bitcoin coming into the market, this particular process occurs mostly every four years. Adding to this, he referred to Bitcoin as the winner of a "supply-and-demand exercise."
Addressing the Bitcoin market, Pompliano said that the macroeconomic market was an absolute 'rocket fuel' for Bitcoin. Factors such as low-interest rates, money printing, and the Federal Reserve's average inflation target of 2% have well-affected Bitcoin, which has constantly driven retail and institutional investors into it.
Pompliano also made a note about Janet Yellen, the treasury secretary selected by President Joe Biden. He said that this was "notorious" for tolerating higher levels of inflation and is a significant reason to state that Bitcoin could soar to $100,000 by the end of this year, considering the rise in its price.
He quoted, "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 a sudden it becomes kind of a consensus trade, it wouldn't surprise me to see something even higher than $100,000."
Though the maximum supply of Bitcoin is 21,000,000 BTC coins, it is currently circulating with a supply of 18,649,162 BTC. Bitcoin's price has surged almost above 650% since the beginning of 2020 as more big investors and major other institutions acknowledged the cryptocurrency's legitimacy as a store value.
These investors include the billionaire hedge-fund manager Stanley Druckenmiller, who told CNBC that he owned a "tiny bit" of Bitcoin as a hedge against inflationary pressure. Also, the venture capitalist Chamath Palihapitiya said that Bitcoin is a "fantastic Hegde" and every citizen should hold 1% of their assets in Bitcoin.
Despite all his bullish views and the assumption that Bitcoin could soar $100,000 by the end of this year, Pompliano shared two major potential risks that he sees for Bitcoin.
He said, "The first thing's a self-inflicted wound, right, if there's a bug introduced into the code or something like that. The second thing would be some geopolitical risk where we saw an aggressive, coordinated kind of action by multiple nation-states."
He also added, "I think that those things have a very low probability of occurring, so it doesn't really kind of seem like that's going to happen in the short term," indicating that there is a good chance that Bitcoin could soar to $100,000 by the end of 2021.
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