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- Bitcoin could surge to $100,000 by the end of 2021, according to crypto investor Anthony Pompliano.
- The co-founder of Morgan Creek Digital told CNBC on Wednesday that bitcoin's demand is rapidly exceeding supply, while the macroeconomic environment of low interest rates is "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," said Pompliano. "And if we continue to get bigger and bigger buyers...if this kind of tips over and all of the sudden it becomes a kind of consensus trade, it wouldn't surprise me to see something even higher."
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Bitcoin could surge to $100,000 by the end of 2021, according to crypto investor Anthony Pompliano. The coin traded as high as $19,389 on Wednesday and is nearing its 2017 all-time high.
Pompliano told CNBC on Wednesday that demand for the coin is rapidly outpacing supply, especially after the bitcoin "halving" in May of 2020, when the amount of bitcoins awarded to miners was cut by half. This halving occurs roughly every four years and serves to limit the future supply of bitcoin coming into the market.
"Bitcoin is the winner of a supply and demand exercise," the co-founder and partner of Morgan Creek Digital said.
Pompliano added that the macro-economic environment right now is "rocket-fuel" for Bitcoin. Low interest rates, money printing, and a Federal Reserve average inflation target of 2% have driven retail and institutional investors into bitcoin, he said.
The investor also said potential Treasury Secretary Janet Yellen is "notorious" for tolerating higher levels of inflation and this could push the bitcoin price higher as well.
"I don't think it's that crazy to see a $100,000 bitcoin price by the end of 2021," said Pompliano. "And if we continue to get bigger and bigger buyers...if this kind of tips over and all of the sudden it becomes a kind of consensus trade, it wouldn't surprise me to see something even higher."
Bitcoin's roughly 160% surge this year comes as more major investors and institutions acknowledge the cryptocurrency's legitimacy as a store of value. Billionaire hedge fund manager Stanley Druckenmiller told CNBC he owns a "tiny bit" of bitcoin as a hedge against inflationary pressure, while venture capitalist Chamath Palihapitiya said every citizen should hold 1% of their assets in bitcoin as it's a "fantastic hedge."
Despite his bullish view, Pompliano shared two potential risks for bitcoin.
"The first thing is a self-inflicted wound. If there's a bug introduced into the code or something like that," he said. "The second thing would be some sort of geopolitical risk where we saw a really aggressive coordinated kind of action by multiple nation states. But again, I think that those things have a very low probability of occurring so it doesn't really seem like that's going to happen in the short-term."
Pompliano's Morgan Creek Digital is an investment firm that helps public pensions, university endowments, and private foundations invest in blockchain technology.
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See Also:
- The true story behind the name 'Black Friday'
- A Wall Street strategist breaks down why bitcoin's latest surge past $18,000 is sniffing out a major downward spiral in the stock market's hottest trade
- 'I still think there's a long way to go': A crypto CEO breaks down why he's bullish on Bitcoin even after its surge back to $18,000 — and shares the other cryptocurrency he thinks is here to stay
