Prominent Crypto Hedge Fund Owner: Bitcoin At $5 Trillion Dollar Market Cap By 2024 Is Doable
Morgan Creek Digital’s founder, Anthony Pompliano recently said that Bitcoin is due for a parabolic growth which will boost its value to about $5 Trillion by 2024.
Bitcoin is the only $95 billion market cap asset I have ever seen that has a realistic chance of a 20-50x increase in value over a 5 year period.
Sometimes the best trade is the simplest.
— Pomp 🌪 (@APompliano) April 22, 2019
Peter Brandt, a respected trader in the crypto realm, feels that the current momentum driving BTC price behavior is reminiscent of the parabolic rise of Bitcoin from $150 to $20,000 that occurred over the 2015 to 2017 time period.
“I think the analogs are holding remarkably well and based on those analog studies, I think cryptos now will go back into a parabolic bull market. The only question I have is do we rally here some and then sometime in late summer check the late 2018 lows or not? There is a chance that it does, there’s a chance that it doesn’t.”
In purely mathematical terms, a parabolic move is an exponential rise. When it comes to chart analysis, we define a parabolic advance as an uptrend during which the angle of ascent increases as the move matures. In general, if a rally has more than one power uptrend support level, it has moved into our category of a parabolic move and is, therefore, rising at an unsustainable rate. The degree of the subsequent volatility and the violence of the inevitable correction tend to be proportional to the magnitude of the advance.
It sounds outlandish to see Bitcoin at between $100,000 and $250,000 by 2024 with this massive market cap, especially for a currency that was created from essentially nothing but maths. However, with the increased interest in Blockchain by enterprises and institutions and the popularity returning to Bitcoin, it is not such a stretch.
When met with skepticism about the prediction, Pomp replied:
“To believe in Bitcoin’s future prospects, you just have to believe that (1) supply/demand economics is valid and (2) demand will increase in the future. There is a risk and you can lose what you invest, but the risk/reward is heavily skewed in a way that I’m attracted to :)”