Opinion: Bitcoin will find the fund at 85% below historical high


Anthony Pompiano, founder and managing partner of venture capital firm Morgan Creek, believes the first criptomoeda can reach a fund 85% below its all-time high. He said that on Monday on the Squawk Box program on CNBC.

"Everything will end up somewhere 85% below the all-time high, or somewhere around $ 3,000. We get close to it over the weekend, but we'll probably have to get down a bit, " "said Pompiano, adding that he bases his prediction on his own experience in crypto-space.

During the transfer, the presenter noted that many investors have lost confidence, suggesting that the likelihood of their return to Bitcoin after losses incurred this year may be low. In response, Pompiano said that Bitcoin was overrated when it reached its all-time high and that a healthy correction is now being observed.

"Bitcoin was overvalued in December 2017. This year there were more sellers than buyers, so the price drops. But there are three things to keep in mind. First, Bitcoin is a transaction platform. It is the safest platform in the world and should have some value. It can not cost you anything. Second, it is the most profitable asset class in the last 10 years. During the longest bull rally, he walked the S & P, Dow Jones and Nasdaq, etc. During this time, it fell twice 80%, but in the last two years it has grown 400%. Third, all this has been achieved by retail investors, " Said Pompiano.

Responding to a question from one of the participants in the discussion on whether Bitcoin can repeat the scenario of tulipmania, the head of Morgan Creek noted that if in 2017 buyers were mostly retail, now financial institutions are starting to connect.

"That is not always said, but most of them do not buy on the stock exchanges. They buy in the over-the-counter market, which is not transparent. Thus, we are now witnessing the leaching of retail investors, "- has added Pompiano

He also assured that Morgan Creek will not refuse to invest in Bitcoin, but, on the contrary, will buy during the price cuts, since "it has a very deep faith in Bitcoin."

Earlier, Anthony Pompiano said many criptomoeda hedge funds would soon be forced to announce closing, while ICO projects will face penalties and bankruptcies ahead. According to him, this is a natural process of cleaning the "tourists" industry.

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