Popularly known Crypto hedge fund manager and co-founder of Morgan Creek Digital Assets, Anthony Pompliano, recently revealed some key strategies on how the world’s flagship crypto, Bitcoin, could reach $225,000 by 2021.
In his most recent letter to investors, the hedge fund manager outlined key fundamentals that may trigger such price action in the not too distant future by saying:
“The average investor fears inflation right now, regardless of whether we actually see that inflation or not. This fear has driven significant capital flows into inflation-hedge assets (Gold, Bitcoin, Real estate, etc). The combination of the Fed’s asset price manipulation and inflation fears have driven gold and Bitcoin to drastically outperform equities and other commodities.
“Let’s first look at the demand side of the equation. The macro-environment is serving as a tailwind. Bitcoin is up more than 50% year-to-date. The continued 0 rate environment and QE will continue to drive demand. Additionally, we are seeing traditional asset management firms start to make the leap into owning Bitcoin.
“Fidelity Investments recently published a paper showing a positive impact for 1%-5% Bitcoin allocation in clients’ portfolios. Stone Ridge ($10B asset manager) now owns $115M in Bitcoin.
“Paul Tudor Jones publicly revealed that he has put 2% of assets into Bitcoin. Multiple public pensions in the US have now gained exposure to Bitcoin via fund managers. Grayscale, the largest digital asset investment manager, saw record inflows of $1B+ in 3Q20 and now has almost $6B in total AUM.”
Why it matters: The world’s economy now looks to be heading toward the insolvency phase, meaning that crypto traders, and global investors are now wary that pre-COVID-19 global economic growth will take longer than anticipated, thereby leading popular companies to hedge against currency devaluation and inflation via investing in digital assets like Bitcoin. Coupled with the bias, there is a fixed amount of BTCs to satisfy the huge appetite prevalent in institutional investors.
Anthony Pompliano also gave key insights on why bitcoin’s high demand, in spite of its fixed amount of supply, might just signal the push in price value next year. He said:
“This increase in demand is just starting in my opinion. We can list all of the leading, forward-thinking firms in only two paragraphs. Eventually, their peers will join them. The demand outlook is strong, and it shows signs of actually accelerating into the first half of 2021.
“More than 60% of all Bitcoin in circulation today have not changed hands in the last 12 months. This means that the majority of Bitcoin investors stomached multiple double-digit price movements, both up and down, and continued to hold the asset.
“You could evaluate this situation as (a) demand is increasing significantly, (b) the supply shock is making Bitcoin more scarce, and (c) the available float is much smaller than people actually realize. This framework leads me to believe that we are going to see a violent upward movement in the Bitcoin price by the end of 2021. My base case is approximately 10x to $100,000 and the bull case is around $250,000 per Bitcoin.”
Coinbase debuts on Nasdaq at around $100 billion valuation
Coinbase resumed trading on the Nasdaq Composite Index today under the ticker “COIN”.
Coinbase, a Cryptocurrency exchange made its highly anticipated debut on Nasdaq on Wednesday, April 14, 2021, becoming the first company devoted entirely to cryptocurrency to enter the US stock exchange.
The IPO of Coinbase Global today was a big turning point for the cryptocurrency business. It had a rousing debut on Wall Street with the digital currency exchange’s stock growing as high as $429, giving it a market cap of $100 billion for a brief period of time.
According to analysts, retail trading accounts for 90% of Coinbase’s income, with the majority of trading taking place in the United States and focusing mainly on the two main cryptos: Bitcoin and ETHUSD. Dubbed the most talked-about IPO on Wall Street, Coinbase resumed trading on the Nasdaq Composite Index today under the ticker “COIN.”
What this means
Given Coinbase’s reception, Crypto optimists insist Bitcoin will not go anywhere in the near future, but will instead become more mainstream. They see the Bitcoin craze as the “start of a new era” in the digital currency world, rather than a passing phase.
Due to Bitcoin’s young and unpredictable existence, investors and public corporations are also wary of investing in it. However, as long as the currency’s popularity is sustained, the bubble hypothesis can be debunked as control and acceptance of the currency spreads further down the line, according to analysts.
It is important to note that Coinbase has a strong correlation with Bitcoin and as it benefits from its bullish run, it can also be hit by a downturn in the market.
What you should know
- Coinbase has become popular amongst cryptocurrency optimists since being founded in 2012, for providing an easier way to exchange shares of digital currencies.
- Coinbase announced last week that its first-quarter sales jumped 847% to $1.8 billion and that it currently has 56 million confirmed customers.
- Coinbase is now one of the largest publicly traded firms in the United States, with a market cap of more than $100 billion.
- Only 83 companies in the S&P 500 index have a market value greater than $100 billion.
- The combined market value of Nasdaq Inc., which operates the Nasdaq Stock Market, and Intercontinental Exchange, which owns the New York Stock Exchange, is greater than Coinbase’s.
Dogecoin hits a new milestone, surges by 54%
DOGE experienced a strong 54% rally and established a new all-time high of $0.1161.
The price of Dogecoin, the fast-rising crypto popularly referred to as DOGE experienced a strong 54% rally and established a new all-time high of $0.1161 amid strong buying pressures prevalent in the Cryptoverse.
While crypto pundits can’t clearly give the rationality behind the recent surge of Dogecoin, its debut as one of the most popular crypto on social media, with top celebrities including Elon Musk and Mark Cuban giving the crypto endless support, makes a strong case.
At the time of writing this report, Dogecoin was trading at $0.113824 with a daily trading volume of $11.3 billion. Dogecoin is up 54.49% for the day.
Dallas Mavericks owner, Mark Cuban is predicting the price of Dogecoin (DOGE) will eventually hit $1, after few days of accepting the crypto as a form of payment.
Dogecoin is a type of digital coin that is decentralized and facilitates peer-to-peer digital transactions. This means you can send money online with much ease. It is usually referred to as “the internet currency.”
It is different from BTC’s proof-of-work protocol in many ways, one of which is the Scrypt technology. The fast-growing altcoin also has a block period of 1 minute, and the total supply is unlimited, meaning that there is no limit to the amount of Dogecoin that can be mined.
“The recent rise of dogecoin, a meme coin, should serve as a reminder to everyone in the space that the most popular use case for crypto is still pure speculation,” said Anil Lulla, a former analyst at Bloomberg and co-founder of the cryptocurrency research firm, Delphi Digital.
Nairametrics | Company Earnings
Access our Live Feed portal for the latest company earnings as they drop.
- Tantalizers Plc reports a loss after tax of N422.05 million in FY 2020.
- NASD Plc announces admission of newly demutualized NGX shares.
- Lotus Halal Fixed Income announces dividend of N20 per unit for Q1 2021.
- Friesland Campina Wamco Nigeria Plc announces AGM, proposes dividend of N6.74 per share.
- ETI appoints Akin Dada as Group Executive, Corporate & Investment banking.