Morgan Creek Digital’s Anthony Pompliano commented on Bitcoin “it has a 15 to 20-fold probability of growth in the next 15 months.” Pompliano also said that investors should invest 1% – 10% of the capital allocated to invest in Bitcoin.
Anthony Pompliano, co-founder of New York-based high-risk investment fund Morgan Creek Digital, said that Bitcoin can grow 15-20 times in a short-term period. Pompliano, known as Pomp in social media, also listed the reasons for the rise for the Bitcoin market, which he predicts will be valued up to 20 times in 15 months for Bitcoin. Anthony Pompliano, after evaluating all the indicators and conditions, announced his price forecast for Bitcoin as 250 thousand dollars.
Fed’s Interest Policy and Inflation
The Federal Reserve decided to bring interest rates closer to zero in April 20202 to minimize the economic effects of the coronavirus and increase loans. According to recent statements, this close to 0% interest rate may continue in the next few years. In addition to this interest rate policy, trillions of dollars’ worth of stimulus package of the US government also triggered inflation.
According to Pomp’s statements, the average investor is now afraid of inflation and they choose safe-haven assets such as Bitcoin, gold and real estate to avoid it. Pompliano argues that with the combination of Fed’s policies and fear of inflation, gold and Bitcoin have made a big leap forward and will continue to do so.
Accelerating Institutional Transition
The BTC price has increased by nearly 50% over a period of 1 year. Popliano thinks that more support from the institutional investor will blow the Bitcoin price. Pomp believes that the increased corporate demand will manifest itself in the first half of 2021.
The institutional transition to Bitcoin has been increasing significantly lately. In addition to the Bitcoin investments of MicroStrategy and Sqaure, which are also very busy in the crypto money media, other companies have started to choose BTC investment. Boston-based Fidelity Investments recommends allocating 1-5% Bitcoin on any portfolio. Stone Ridge, a $ 10 billion asset management company, announced that they now have $ 15 million worth of BTC. Billionaire investor Pual Tudor Jones invested 1-2% of his $ 22 billion portfolio in Bitcoin futures transactions.
Increasing Demand and Limited Supply
Fund manager Pompliano underlined that the growing demand for Bitcoin and its being a hard-money asset is a sign in favor of Bitcoin. Pomp said that although its total supply is 21 million, with increasing difficulty levels, a potential supply blow to Bitcoin, which will remain at around 18.5 million for some more time, will also increase the price.
Against the growing demand for Bitcoin, more institutions and whales holding large amounts of BTC as well as individual investors can strain Bitcoin reserves in exchanges, and this famine can bring upward winds.