Bitcoin Could Rise To $ 100,000 By End Of Next Year As Demand Quickly Outpaces Supply, Cryptocurrency Investor Says | Currency News | Financial and business news

• Bitcoin could rise 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 the demand for bitcoin is rapidly outstripping supply, while the macroeconomic environment of low interest rates is “rocket fuel” for the price of bitcoin.
• “I don’t think it’s that crazy to see a price of $ 100,000 bitcoin by the end of 2021,” Pompliano said. “And if we keep getting bigger and bigger buyers … if that kind of tipping and suddenly it becomes some kind of consensus exchange, it wouldn’t surprise me to see something even higher.”
• Watch live Bitcoin trading here.

Bitcoin could rise 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 all-time high in 2017.

Pompliano told CNBC on Wednesday that demand for the coin is rapidly outstripping supply, especially after bitcoin’s “halving” in May 2020, when the amount of bitcoin allotted to miners was halved. This halving occurs roughly every four years and serves to limit the future supply of bitcoin arriving on the market.

“Bitcoin is the winner of a supply and demand exercise,” said co-founder and partner of Morgan Creek Digital.

Pompliano added that the macroeconomic environment right now is “rocket fuel” for Bitcoin. Low interest rates, money printing, and a 2% average inflation target by the Federal Reserve have prompted retail and institutional investors to use bitcoin, he said.

The investor also said potential Treasury Secretary Janet Yellen is “known” for tolerating higher levels of inflation and this could push the price of bitcoin higher as well.

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“I don’t think it’s that crazy to see a price of $ 100,000 bitcoin by the end of 2021,” Pompliano said. “And if we keep getting bigger and bigger buyers … if that kind of tipping and suddenly it becomes some kind of consensus exchange, it wouldn’t surprise me to see something even higher.”

Bitcoin’s roughly 160% rise this year comes as major investors and institutions recognize the legitimacy of cryptocurrency 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 own 1% of their bitcoin assets. as it is a “fantastic cover”.

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,” he said. “The second thing would be some kind of geopolitical risk where we have seen some kind of really aggressive coordinated action by multiple nation states. But again, I think these things have a very low probability of happening, so it just doesn’t seem like that. so be it. it will happen in the short term “.

Morgan Creek Digital of Pompliano is an investment firm that helps public pensions, college endowments and private foundations invest in blockchain technology.

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