Bitcoin could soar to $100,000 by the end of next year as demand rapidly exceeds supply, a crypto investor says


Bitcoin could surge to $100,000 by the finish of 2021, in accordance with the crypto investor Anthony Pompliano. The coin traded as higher as $19,389 on Wednesday and is nearing its all-time higher, reached in 2017.
Pompliano, a cofounder of Morgan Creek Digital, told CNBC on Wednesday that demand for the coin was swiftly outpacing provide, particularly soon after its “halving” in Might, when the amount of bitcoins awarded to miners was reduce in half. This occurs roughly every 4 years and serves to limit the provide of bitcoin coming into the market.
Bitcoin is “the winner of a supply-and-demand exercise,” Pompliano mentioned.

Pompliano added that the macroeconomic environment right now was “rocket fuel” for Bitcoin. Low interest rates, funds printing, and the Federal Reserve’s typical inflation target of 2% have driven retail and institutional investors into Bitcoin, he said.

The investor also stated that Janet Yellen, President-elect Joe Biden’s pick for treasury secretary, was “notorious” for tolerating larger levels of inflation and that this could also push the coin’s cost larger.

“I don’t feel it’s that crazy to find out a $100,000 bitcoin price by the end of 2021,” Pompliano mentioned. “And if we continue to obtain larger and bigger buyers … if this sort of tips more than and all the sudden it becomes type of a consensus trade, it wouldn’t surprise me to view some thing even higher than $100,000.”

Bitcoin has surged by roughly 160% this year as more major investors and institutions acknowledge the cryptocurrency’s legitimacy as a shop of worth. The billionaire hedge-fund manager Stanley Druckenmiller told CNBC earlier this month that he owned a “tiny bit” of bitcoin as a hedge against inflationary pressure, while the venture capitalist Chamath Palihapitiya stated in February that every citizen need to hold 1% of their assets in bitcoin simply because it’s a “fantastic hedge.”
In spite of his bullish view, Pompliano shared two prospective risks he sees for Bitcoin.

“The very first thing’s a self-inflicted wound, proper, if there’s a bug introduced into the code or some thing like that,” he said. “The second thing will be some sort of geopolitical risk exactly where we saw a genuinely aggressive coordinated type of action by several nation-states.

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