Founder and partner of Morgan Creek Digital, Anthony Pompliano, in a conversation with CNBC this Monday, said that the Bitcoin price could find at least 85% below its historical maximum. Pompiano explained that he bases this forecast on his experience in the cryptocurrency sector.
“85% of the current maximum is the point where it will end. About $ 3,000. We approached it over the weekend, but we may have to go down a bit more, ”he said.
According to Pompliano, in the previous segment, Bitcoin was overvalued, and therefore the cryptocurrency continues to undergo a healthy correction. “Bitcoin was overvalued in December 2017. This year, there were more sellers than buyers, so the price drops. But there are three things you should not forget. The first is a platform for settlement transactions. This is the safest platform in the world. It should be worth something. It can not cost anything. The second is the most profitable asset class in the last 10 years. It walked around the S & P, Dow Jones, Nasdaq, etc. during the longest bull cycle. During this time, it has fallen twice by 80%, but over the past 2 years, it has grown by 400%. The third thing is that all this was achieved by retail investors, ”added Pompliano.
Answering the question of one of the participants of the discussion about why Bitcoin does not repeat the scenario of tulipmania, Pompliano said: “I believe that we should not forget that throughout 2017 all buyers were retail. And now, together with a decline in 2018, financial institutions are beginning to connect. This is not often said, but most of them do not buy on the stock exchanges. They buy in the OTC market, which is not transparent. Thus, we are now witnessing the erosion of retail investors. ”
He also confirmed that his company is not going to refuse to invest in Bitcoin, but on the contrary – will buy at lower prices, since “he has a very deep conviction”.
Recently Pompliano warned that the next six weeks may not be the easiest in the fate of cryptocurrency funds.