Cryptocurrency
Bitcoin could reach $225,000 by 2021
Morgan Creek Digital Assets’ Anthony Pompliano outlines key fundamentals that may trigger Bitcoin price action.
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.
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“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.
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“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.
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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.
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“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.
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“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.”
Cryptocurrency
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Cryptocurrency
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.
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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.”
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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.
