Bitcoin Moon Target: $2 Trillion Market Cap by 2021 End
- $100k per Bitcoin by 2021: Anthony Pompliano’s target
- On the way to a new peak, BTC to experience several mini-boom/bust cycles
Bitcoin at $100k by December 2021 end is the target set by Morgan Creek Digital’s Anthony Pompliano that will put Bitcoin market capitalization to reach over $2 trillion.
Bitcoin proponent Anthony “Pomp” Pompliano called out for $3,000 before getting to see $10,000 in the second half of 2018 when BTC was trading at $6,770.
In December 2018, we crashed to that level and last week saw $10k the first time since leaving it in March 2018.
This time, Pomp has predicted a future price for the leading cryptocurrency which he says is a “difficult” task but he doesn’t aim for “100 percent” accuracy either.
“I believe that Bitcoin will reach a $100,000 price point before December 31, 2021. My current confidence level of this happening is around 70-75%,”
Contributing Factors to this “Moon” Target
But how’s this gonna happen?
Pomp’s “personal opinion” comes at a time when Bitcoin has embarked on its journey to yet another bull rally and moving closer to the reward halving. This will be one of the driving factors behind Bitcoin’s mooning.
A fixed supply asset with a deflationary supply schedule, Bitcoin ‘s daily supply would be reduced by 50 percent starting from May 2020. By the supply and demand economics, over the next 2.5 years, while the supply will decrease, the demand will increase causing price appreciation.
This demand Pomp says will come from various sources including large scale institutional adoption and the multiple ETF and retail product approvals.
Outside factors will also play an integral role such as increased global instability, lack of performance in traditional markets, and continued manipulation of currencies, markets, and economies by the governments all over the world.
All of these factors and more will pump the flagship cryptocurrency to trillion dollar market cap which is 1/3 the market cap of yellow metal and less than 1/40 the global money supply.
However, Pomp warns one should “never” invest more than they are willing to lose, which applies to any market infused with volatility just like traditional ones. Additionally, this target won’t be a straight moon shot rather will involve “numerous” 20 to 30 percent drawdowns.
These retracements, the mini-boom/bust cycles are
“natural market dynamics whenever an asset gains significant value in short periods of time.”