The Founder and partner at Morgan Creek Digital Assets said that Bitcoin (BTC) could reach new lows in the near future. The virtual currency has been in a bear trend since the end of 2017 when it reached $20,000. He made these comments during an interview at CNBC’s squawk box a few days ago.
Pompliano Asks If Bitcoin Could Hit $3,000?
Since its all-time high at the end of 2017, Bitcoin lost more than 82% of its value. This drop is already one of the largest in the history of the virtual currency. During the last weeks, the price of the popular digital asset and other coins recovered from the lowest point this year. Some cryptocurrencies were even able to grow more than 50% in just a few days.
Nevertheless, Bitcoin could keep falling in the near future. It might be possible for the asset to go even under $3,000 before seeing a change in the general trend of Bitcoin. Although he has a bearish opinion for the short term, he remains very bullish for the future.
He believes that cryptocurrencies are incredibly transparent and that they are driven by mathematics rather than by political decisions.
Pompliano commented about this:
“There’s a saying we have in crypto that says ‘long bitcoin, short the bankers.’ It’s the idea that cryptocurrency is incredibly transparent, it’s driven by math and software code. I think that there’s a lot more… lack of transparency… and nefarious activity that goes on in the traditional financial markets.”
At the same time, he explained that as Bitcoin has a fixed supply, when a larger demand enters the market the price will clearly experience a bullish trend and a price increase. During 2017, we have seen how retail investors pushed Bitcoin’s price up to $20,000. If traditional financial institutions and larger investors are able to place their funds in the space, cryptos could reach new highs in the future.
Pompliano is a very positive individual in the space. Nonetheless, in this case, he sees that Bitcoin could keep falling before starting a new bull run.
Bitcoin is currently being traded around $3,650 and it has a market capitalization of $63.74 billion. In the last 24 hours, the popular virtual currency lost 5% of its value. Nevertheless, it has been the best performing asset among the top 10 during the last day.