Anthony „Pomp“ Pompliano says Bitcoin is the winner of the bid and ask exercise.
Pomp wouldn’t be surprised if the price of bitcoin hit $ 100,000 before the end of 2021.
The supply shock can catapult bitcoin to a new ATH.
As Bitcoin (BTC) seeks a new all-time high (ATH), noted permabull Anthony ‚Pomp‘ Pompliano, said the largest crypto by market cap could cross $ 100,000 per ‚coin‘ before the end of 2021 .
Several Bitcoin supporters are forecasting a parabolic rise in the price of BTC in the current bullish streak. BTC is currently up over 168% year-to-date (YTD).
The confluence of the winds propels the soaring bitcoin prices
Speaking to CNBC on November 25, Pompliano, co-founder of crypto asset hedge fund Morgan Creek Digital, described Bitcoin as „the winner of the bid and ask exercise.“
According to Pomp, the current price of BTC is due to a convergence of several factors forcing increased demand for a scarce asset.
In May, Bitcoin saw another halving event as block rewards become even rarer. This step meant a further reduction in the daily supply of BTC amid growing demand for the popular cryptocurrency.
Speaking in the interview, Pomp identified the growing pivot towards inflation-hedging assets and the desire for long-term HODLing as triggers for upward action in BTC prices .
The Morgan Creek Digital co-founder also pointed to the supply shock brought on by massive whale buying activities like PayPal and Square.
Even though bitcoin is still trading at around $ 700 less than its ATH, over 97% of BTC addresses are profitable. Indeed, long-term HODLing seems to be the dominant investment logic among holders.
Pompliano also highlighted the growing institutional appetite for bitcoin, as seen in recent months. State-owned companies like MicroStrategy and Square are now adopting BTC as a cash reserve asset instead of cash .
Wall Street leads 2020 bullish lead
Unlike the 2017 surge, the current upward progression seems much quieter, with Bitcoin searches on Google falling far below the levels seen three years ago. For Mike Novogratz , founder of Galaxy Digital:
“This rally is driven by institutions that are slowly entering space, wealthy individuals, hedge funds, real institutions. Bitcoin has become a macro asset. “
As is the case during bitcoin’s bullish times, many commentators are particularly bullish with the BTC price predictions. Speaking in the interview, Pompliano said the price of bitcoin could reach $ 100,000 before the end of 2021.
According to Pomp, if the emerging institutional consensus regarding Bitcoin solidifies, then the price of BTC should easily climb even these high cliffs.
In the midst of this parabolic advance driven by the big money players, some stakeholders are claiming that Bitcoin will begin to challenge gold as a de facto inflation hedging asset.