Anthony Pompliano, the co-founder of Morgan Creek Digital, explained that $100,000 is a conservative estimation for Bitcoin’s (BTC) price. He said that during an interview with CNN when talking about the effects of the new rate cut by the FED. The European Central Bank is also stimulating the economy through monetary means.
Could Bitcoin Surpass $100,000?
Anthony Pompliano is a recognized figure in the cryptocurrency space. He has been working in order to expand Bitcoin’s influence in the market and promoting the virtual currency in the United States.
In this interview with CNN, he talked about Bitcoin and how it would surpass $100,000 in the future.
Imagine a world where central banks cut rates and print money (yes, it’s called QE) and Bitcoin hits $100K in under 2.5 years time!! @APompliano says it WILL happen. Find out how. 👇🏼 pic.twitter.com/dE5blFvDWM
— Julia Chatterley (@jchatterleyCNN) August 1, 2019
A few days ago, the chairman of the U.S. Federal Reserve, Jerome Powell, informed that they cut rates by a quarter-point. This comes after worries about a slowdown in the economy. Although the U.S. economy has been doing very well during the last months, the cut in the reference rates aims at helping the economy keep in the right direction.
Meanwhile, in Europe, the European Central Bank (ECB) will continue with the stimulus on the economy due to the low inflation rates registered and negative data from the industrial PMI.
It is worth mentioning that Bitcoin will also be experiencing a halving as soon as next year. This is very bullish for the digital asset. Miners are going to be receiving 6.25 BTC rather than 12.5 BTC as they are currently receiving for their work processing transactions.
With a lower issuance of Bitcoin and the new monetary stimulus on the economy, Bitcoin could become a very valuable asset. At the moment, the excess of liquidity is moving towards stocks, in the future, this liquidity could move towards Bitcoin if inflationary pressures increase.
For Bitcoin to reach $100,000, the digital currency would have to grow 817% in the coming years. PlanB, a recognized crypto analyst, considers that Bitcoin’s 2012 stock-to-flow model still works.
As he mentioned on Twitter a few weeks ago, following this analysis, by 2021, Bitcoin is going to be worth $100,000 and by 2025, the most popular cryptocurrency could reach $1 million. There is only one figure that considers that Bitcoin could reach $1 million, John McAfee. Mr. McAfee made a prediction in 2017 in which he said that by the end of 2020, Bitcoin was going to be reaching $1 million, much time before than what PlanB considers.
#bitcoin 2012 Stock-to-flow model still works!
S2F model made with 2009-2012 data (only 4 data points, before any halving – green line) correctly predicted 2013-2019 (7 out-of-sample data points + blue line) with 99.5% R2. Current prediction: 2021 $100K, 2025 $1M🚀 pic.twitter.com/NX8djTxrA1
— PlanB (@100trillionUSD) July 18, 2019
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