Pomp: Boom Cycle Will See Bitcoin Price 10-20X Within 15 Months
The Bitcoin ‘boom cycle’ that we are about to experience will likely see Bitcoin rise of 10-20X, meaning a price of up to $250,000 by the end of 2021, according to economist and Morgan Creek Digital co-founder Anthony Pompliano.
In a daily newsletter sent to his investor group, Pompliano (Pomp) expressed urgency for his readership to invest up to 10% of their portfolio in Bitcoin.
Pomp cited a string of upside catalysts that leads him to believe we will see a fantastic surge in the price of Bitcoin, and offered a call with any asset manager to discuss the leading cryptocurrency further.
Bitcoin Will Likely See a 10-20X Price Rise In The Next 15 Months
Bitcoin has every possibility of growing by up to 20 times within the next 15 months, according to Morgan Creek Digital co-founder and fund manager Anthony Pompliano.
Pomp told his clients that ‘we are at the start of another boom cycle in Bitcoin,’ one that ‘is likely to drive us 10-20x higher in the 15 month window.’
Pomp clearly and deliberately told his readers not to dispel any thoughts they might have missed out on investing in Bitcoin early enough.
‘That couldn’t be further from the truth in my opinion,’ said Pomp.
Pomp laid the foundation of his thesis, by expressing the state of the global economy, and the monetary policy of the Federal Reserve.
With zero percent interest rates and $3 trillion printed with $2 trillion more on the way, the Fed’s policy of aggressively targeting 2% had opened the way for many investors to already invest in Bitcoin.
‘The average investor fears inflation right now, regardless of whether we [actually] see that inflation or not,’ wrote Pomp, before explaining ‘fear has driven significant capital flows into inflation-hedge assets (Gold, Bitcoin, Real estate, etc.).’
And Pomp explained how past QE from the Fed had manipulated asset prices, which had ultimately led to gold and Bitcoin drastically outperforming equities and other commodities.
Institutional Demand and Scarce Supply Will Pump Bitcoin’s Price
Pomp predicted further upside for Bitcoin as more interest from the institutional investors would drive the demand up, referencing big moves from Wall Street as confirmation.
Fidelity Investments, with $3.3 trillion AUM, recently recommended its clients gain up to 5% exposure to Bitcoin, saying Bitcoin was ‘uniques among investment assets.’
And recently, Stone Ridge, a $10 billion asset management firm, said it had made a move, buying $115 million worth of Bitcoin.
Pomp also referenced Billionaire investor Paul Tudor Jones putting 2% of his portfolio into Bitcoin, and also explained how public pensions had now started gaining exposure to Bitcoin through funds.
Pomp also explained how corporations were using their treasuries to invest in Bitcoin – Nasdaq-listed MicroStrategy investing 85% of its treasury into Bitcoin, and Square Inc. recently invested $50m in Bitcoin.
The list went on, but Pomp determined that the demand for Bitcoin was only just beginning and that all corporate peers would eventually join them and buy Bitcoin.
‘This increase in demand [for Bitcoin] is just starting in my opinion,’ said Pomp. ‘Eventually their peers will join them. The demand outlook is strong, and it shows signs of actually accelerating into the first half of 2021.’
The Morgan Creek Digital fund manager also cited Bitcoin’s supply shock as a leading factor behind his price prediction.
With a 21 million hard cap and 18.4 million bitcoins already in circulation, Pomp said Bitcoin’s scarcity against the rising demand would act as another bullish tailwind.
Pomp explained the Bitcoin halvings and said these events along with the rising institutional demand made Bitcoin ‘the best asymmetric risk-reward ratio of any other asset on the market.’
Bitcoin Hodlers Are The Bedrock of Bitcoin
And Pomp finished off his thesis by outlining Bitcoin hodlers determination and confidence being the bedrock of Bitcoin’s past, present and future.
‘More than 60% of all Bitcoin in circulation today have not changed hands in the last 12 months,’ wrote Pomp. ‘This means that majority of Bitcoin investors stomached multiple double-digit price movements, both up and down, and continued to hold the asset.’
Pomp highlighted the 55% single day drop in March due to the liquidity crisis, and how that hadn’t even triggered a panic in any of the 11 million plus Bitcoins being held long term.
Withering Supply, Increasing Demand, and Hodlers of Last Resort Will Ensure a Significant Price Increase For Bitcoin
Pomp The Bitcoin Bull Knows a Thing or Two
Pomp is undoubtedly a major Bitcoin bull, and critics will try and claim he’s shilling his own investment. He is more than 50% personally exposed to Bitcoin.
But Pomp isn’t naïve, and wouldn’t risk such a huge amount of his own wealth on something just because it has a high asymmetric risk-reward ratio.
Pomp really believes in Bitcoin. He has researched and discussed Bitcoin extensively with some of the biggest names in all industries, and he has incredible insider knowledge.
Pomp’s Bitcoin to USD $250,000 bullish price prediction hasn’t just been plucked out of a hopium balloon. His bearish outlook is a mere $100,000 Bitcoin price prediction.
The Pomp letter goes out to 80,000 people every day, and some of his readers are big time money managers. They are taking note, because they have to.
Here’s to an up coming ‘boom cycle’.
Author: Tommy Limpitlaw
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.