Speaking with CNBC, Morgan Creek founder Anthony Pompliano shared huge optimism with regard to the BTC market. With the widespread market collapse, BTC is down about 80% from all-time highs reached in December 2017. Confidence in the market is currently very low and people who bought early last year are reported to be selling their BTC. According to Pompliano, this is a poor decision, and BTC will bottom at an 85% discount from all-time highs.
Anthony Pompliano – Three things to remember
Anthony Pompliano indicated on the CNBC Squawk Box that his firm would happily continue to acquire discounted BTC, though he stated that the crypto-asset was overvalued in December 2017 when it reached highs nearing USD 20,000. According to Pompliano, the price will not go to zero, despite claims from Nouriel Roubini and other crypto detractors. It is the best asset class of the modern era and is still a hugely profitable investment since it was released in 2009.
“There’s three things you gotta remember. The first is, this is a transaction settlement layer. It’s the most secure in the world. It’s got to be worth something. It can’t be worth zero. The second is it’s the best performing asset class in the last ten years. It’s outperformed S&P, Dow, Nasdaq, et cetera, during the longest bull run. And so it experienced two 80% drops during that time, but the asset’s still up over 400% in the last two years…And the third thing is: that was all done by retail.”
More to fall before BTC becomes bullish
Other points noted by the Morgan Creek co-founder was that most institutional investors are gaining exposure via the OTC market which is not transparent. What is currently happening is a washout of retail investors who make the mistake of selling low and buying high, while institutions do the opposite. Morgan Creek jointly owns the Digital Asset Index fund, which enables institutions to gain access to digital tokens.
Additionally, the price of BTC will hit about USD 3,000, which will constitute a drop of 85% from all-time highs. Currently, the crypto-asset trades at around USD 3,750. USD 3,000 will be the lowest the price will go before it goes upwards, according to Anthony Pompliano.
BTC is a volatile asset with no standardized price evaluations, yet retail investors might do well to seriously reconsider selling at the current price. After all, it is still a better investment than any other on a yearly basis except for those unfortunate to buy from December 2017 onwards. Additionally, it has more upside potential than down, as it can possibly reach USD 20,000 again, nearly seven times greater than an unlikely descent to zero.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.