Crypto Analyst, Anthony Pompliano has said that bitcoin could sell for as much as $250,000 before the end of 2021.
Giving his statement in a letter, the founder and partner of morgan creek, Anthony Pompliano noted that the leading digital asset might witness a massive appreciation in the next 15 month.
Furthermore, Pompliano said that we are at an unprecedented time when looking at it from a macro-economic view. The letter that was sent by Pompliano was intended for a few of his friends but was later published online. In the letter, he gave vital insights into why he thinks bitcoin could trade for $250,000 in the next 15 months.
Institutional investors demand bitcoin critical to its surge
In the letter, he notes that bitcoin could trade at $250,000 in the next few months because it will undergo one of the craziest bullish scenarios in history. Furthermore, he said conservatively that the coin would appreciate by a factor of 10 to 20 in the next 15 months.
He also notes that the increased demand for bitcoin by institutional investors will play a very pivotal role in the surge of the leading digital asset. Another factor he mentioned was the increased hodling on the part of traders.
Also, Pompliano urged current holders and traders not to consider their investments in bitcoin as missed opportunities. “Many investors will look at the historical price increase of the digital asset and believe they “missed it.
” That could not be further from the truth in my opinion. I believe we are at the start of another boom cycle in Bitcoin, which is likely to drive us 10-20x higher in the 15-month window,” he said. Pompliano noted that the factors above are very pivotal to the bullish nature of the coin in the coming months.
Pompliano sees bitcoin as a hedge against inflation
Talking about the federal reserve in his letter, Pompliano pointed out that the outfit already cut its interest rate to 0% and is currently sustaining them at this level. Furthermore, he talked noted that the balance sheet has expanded by 75% because of the $3 trillion stimulus packages shared during the pandemic period.
To further compound the woes, they are still planning to give out another $2 trillion worth of economic relief in the coming months.
In his argument, Pompliano noted that such a move is perfect for bitcoin as it would serve as an inflation hedge for the community. The average investor fears inflation right now, regardless of whether we see that inflation or not. This fear has driven significant capital flows into inflation-hedge assets (Gold, Bitcoin, Real estate, etc.).
The combination of the Fed’s asset price manipulation and inflation fears has driven gold and Bitcoin to outperform equities and other commodities drastically,” he said.
The last factor he mentioned was the increasingly high demand for Bitcoin among institutional investors such as Paul Tudor Jones. The latter owns 2% of his assets in Bitcoin while Stone Ridge asset owns $115 million in Bitcoin.
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