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Bitcoin [BTC] and other cryptocurrencies’ chance at major recovery in 2019 is low, says Anthony Pompliano




Bitcoin [BTC] and other cryptocurrencies' chance at major recovery in 2019 is low, says Anthony Pompliano
Source: Unsplash

The year of 2018 turned out to be massive roller coaster ride for Bitcoin [BTC] and other cryptocurrencies. The year witnessed all the coins take a downward trend right after reaching their all-time high. Majority of the top currencies plunged by over 90% and Bitcoin [BTC], the largest cryptocurrency by market cap, dropped by over 80% since its all-time high.

The downtrend of the market not only crushed the investors hope but also several projects, with some of the top projects lay-off almost half its employees. This year, on the other hand, started with Bitcoin and other cryptocurrencies taking the upward trend, which was sustained in the market for a couple of days. During the same timeframe, several coins started to regain their previous position in the market. However, this short-term hike came to an end this week as the coins plummeted in the market within a fraction of minutes.

Anthony Pompliano aka Pomp, the founder of Morgan Creek Digital Asset, spoke about whether the cryptocurrency market is past the worst, in an interview with CNBC Crypto Trader. Arjun Balaji, a cryptocurrency analyst and Meltem Demirors, the CSO of CoinShares, also opined on Bitcoin’s worse days.

According to Pomp, Bitcoin [BTC] would probably not fall “much further” in terms of price. However, he went on to say that he doesn’t think that “it’s over”, adding that the chances of Bitcoin [BTC] and other cryptocurrencies major recovery in 2019 “is probably low”. He added:

“I think that it’s likely we kind of just go sideways for a while right. You know, if you look at Bitcoin’s price, I don’t know maybe somewhere between like 2500-4500 for a good portion of the year is probably likely based on what we’re seeing”

This was followed with Meltem stating that the “pain is going to continue”. She added that in 2018, the space realized that several projects, which were the catalyst for the speculative boom, that led it the boom of exchanges and other venture capitals projects, did not have a sustainable business model. He said:

“They’re really just dependent on the continued price appreciation of a token and so I do think for 2019 we’re gonna continue to see a lot of different business models struggle but I think security tokens for example or doing regulated issuances using the blockchain as a digitization tool that will create new opportunities.”

Arjun Balaji stated that the cryptocurrency space has not seen the worst year, adding that the market has still not bottomed. He went on to say:

“Regardless of how I feel about it a lot of you know the tokens that you see trading in this market they’re virtually zombies they haven’t been fully flushed out of the market yet so until that happens I’m a little skeptical that the markets fully bottom down. I think we’ll see that sometime this year.”

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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Bitcoin [BTC]: Morgan Creek CEO compares BTC returns to endowment returns

Akash Anand



Bitcoin [BTC] returns compared to endowment returns by Morgan Creek CEO
Source: Pixabay

Bitcoin [BTC] and the rest of the cryptocurrency market has seen something of an upgrade, compared to its situation in 2018 when the bear market resulted prices falling from their peak. Many supporters of the world’s largest cryptocurrency have repeatedly claimed that the return on investments on Bitcoin has always been greater than that of traditional financial markets.

In a recent tweet, Mark Yusko, CEO and Chief Investment Officer of Morgan Creek Digital Capital, pointed out some value points of adding Bitcoin to an investor’s portfolio. Yusko tweeted,

“Some numbers to ponder when thinking about value of adding #Bitcoin to your portfolio
Endowments have $613B in Assets. Average return over past 5 yrs was mediocre 7.2%
Had they allocated 1% to $BTC return would’ve been 9.2%
Had #Bitcoin gone to zero, return would’ve been 7%.”

The Morgan Creek official made this statement on the back of Bitcoin’s stellar performance over the past couple of weeks. Ever since the world’s largest cryptocurrency fell from its $6000 hold back in November 2018 to settle below $4000, it found it difficult to break that threshold. The point, considered by many experts in the field as being close to Bitcoin’s bottom, continued to pull the cryptocurrency into a bearish vortex. Since April 1, Bitcoin’s price has spiked, in stark contrast to the strong sideways movement that it held since November.

Looking at the numbers, Yusko’s statements about BTC yields can be verified because investors holding the cryptocurrency at the $4170 mark on March 31 saw their portfolio spike by a whopping 100 percent on May 16, when the price touched $8280.

Mark Yusko was also in the news recently when he stated that Bitcoin was a great diversifying asset. He backed this up by comparing the digital asset’s performance with that of the S&P market. He said,

“Morgan Creek had launched the cryptocurrency challenge back in December and there were not many takers. In a way that was good because BTC is up by more than 100 percent right now, which is a much better hit rate than that of the S&P market. We will see that in the next 10 years, Bitcoin will outstrip even its current performance and maybe even more.”


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