Bitcoin Investment with Anthony Pompliano, a well-recognized Crypto hedge fund trader and co-founder of Morgan Creek Digital Assets, recently disclosed some key strategies on how to hit $225,000 by 2021 for the world’s flagship crypto, Bitcoin.
The hedge fund manager outlined key fundamentals in his most recent letter to investors that could cause such market action in the not too distant future by saying:
“The average investor fears inflation right now, regardless of whether we actually 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 have driven gold and Bitcoin to drastically outperform equities and other commodities.
“Let’s first look at the equation’s demand side. The macro-ambient acts as a tailwind. Year-to-date, Bitcoin is up more than 50%. Demand will continue to be powered by the continued 0 rate climate and QE. In addition, we are seeing conventional wealth management organizations starting to make the leap into Bitcoin ownership.
Fidelity Investments recently released a report demonstrating a favorable effect on the distribution of 1%-5% Bitcoin to consumer portfolios. Stone Ridge currently holds $115 M in Bitcoin ($10B wealth manager).
“Paul Tudor Jones publicly revealed that he has put 2% of assets into Bitcoin. Multiple public pensions in the US have now gained exposure to Bitcoin via fund managers. Grayscale, the largest digital asset investment manager, saw record inflows of $1B+ in 3Q20 and now has almost $6B in total AUM.”
Why it matters: the world economy is now moving into the insolvency process, meaning that crypto traders and global investors are now wary that pre–COVID–19 global economic growth will take longer than anticipated, causing famous businesses to invest in digital assets such as Bitcoin to protect against currency devaluation and inflation.
Bitcoin Investment – Why Bitcoin Could Signify Value In Price
There is a set number of BTCs paired with the skew to meet the immense demand prevailing in institutional investors.
Anthony Pompliano also provided crucial insights into why bitcoin’s strong demand could only signify the push in price value next year, considering its set quantity of supply. He was saying:
‘’In my view, this growth in demand is just beginning. In just two paragraphs, we can list all the leading, forward-thinking companies. Eventually, they would be joined by their colleagues. The outlook for demand is solid, and it shows signs that the first half of 2021 is already accelerating’’.
“More than 60% of all Bitcoin in circulation today have not changed hands in the last 12 months. This means that the majority of Bitcoin investors stomached multiple double-digit price movements, both up and down, and continued to hold the asset.
“You could evaluate this situation as (a) demand is increasing significantly, (b) the supply shock is making Bitcoin more scarce, and (c) the available float is much smaller than people actually realize. This framework leads me to believe that we are going to see a violent upward movement in the Bitcoin price by the end of 2021. My base case is approximately 10x to $100,000 and the bull case is around $250,000 per Bitcoin.”
Is Bitcoin a good investment?
Anthony Pompliano, a well-recognized Crypto hedge fund trader and co-founder of Morgan Creek Digital Assets, recently disclosed some key strategies on how to hit $225,000 by 2021 for the world’s flagship crypto, Bitcoin.