Saturday , April 17 2021

Opinion: Bitcoin will "bottom" at 85% below the maximum historical

Founder and managing partner of venture capital firm Morgan Creek Anthony Pompliano believes that the first cryptocurrency can reach the "bottom" at the level of 85% below the historical high. He said this on Monday in Squawk Box program on CNBC TV channel.

"Everything will end somewhere in the 85% lower than the historical maximum, ie somewhere around $ 3000 We approached this weekend, but will probably have to go down a little more" – Pompliano said, adding that he bases his forecast on their own experience in kriptovalyutnom space.

During the program's host noted that many investors have lost confidence in the assumption that the probability of their return to the Bitcoin incurred after this year's losses may be low. In response to this Pompliano he said that Bitcoin has been overvalued, when he went on the historical maximum, and that now there is a healthy correction.

"Bitcoin was revalued in December 2017. This year there were more sellers than buyers, so the price falls. But we should remember three things. Firstly, Bitcoin – a platform for the implementation of the transaction. This is the most secure platform in the world, and it should be of some value. It can not be worth anything. Secondly, it is the most lucrative asset class over the past 10 years. During the longest bovine rally he walked S & P, Dow and Nasdaq, etc. During this time he twice fell by 80%, but over the past two years, an increase of 400%. Thirdly, all this failed to reach retail investors forces " – Pompliano said.

Responding to a question from the participants of the discussion about whether Bitcoin can repeat the scenario of tulip mania, the head of Morgan Creek said that if in 2017 the buyers were mainly retail, but now begin to connect financial institutions.

"It is not often said, but most of them do not buy on the stock exchanges. They buy over the counter that is not very transparent. Thus, we are now seeing washout retail investors ", – He added Pompliano

He also assured that Morgan Creek was not going to give up investments in Bitcoin, but on the contrary, will buy when prices decline, since "has a very deep faith in Bitcoin."

Previously, Anthony Pompliano said that many kriptovalyutnye hedge funds will soon be forced to & # 39; to reveal the closure, and the ICO-projects ahead of penalties and bankruptcy. According to him, this is a natural process of purification industry by "tourists".

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