Anthony Pompliano, aka Pomp, a partner at Morgan Creek Digital, spoke about Bitcoin’s price action as the year 2018 comes to an end. He also spoke about the price of Bitcoin in a longer time frame and the future of digital assets as a whole.
In an interview with BlockTV, with Pompliano said that Bitcoin has not seen a bottom yet and that it could go further down and could even see a price action sub $3,000 or near that.
“I think our target from August of 2018 has been $3000, we came close once already, so we may just actually go back there or somewhere close. Along with that, over a long period of time, I tend to think that some of the bigger numbers that are thrown out will likely be accurate.”
Pomp continued that predictions for Bitcoin’s price like $50,000 or $100,000 are not impossible and that it would happen eventually in the longer time frame but nobody knows when it would happen. He said it could happen in three years or five years or any number of years.
Discussing a hypothetical situation, Pomp said that true capitulation would happen if the Bitcoin ETF was approved and the price went either sideways or in a downward fashion.
Pompliano said that regulations regarding ICOs are still not clear and like many other builders in the ecosystem, he was waiting for the clarity regarding these issues. When and if those regulations are finalized, entrepreneurs would flock around to build companies adhering to those rules.
Furthermore, Pomp said that Facebook getting into cryptocurrencies is a massive event in the cryptocurrency ecosystem, as the number of users on their platform is staggering. He added:
“Facebook is like the most important company in crypto. Well, they’ve got 2 billion users that use their product every single month. And whatever they create, it literally does not matter what they create… it is almost immediately the most used product in crypto.”
He also said that the recent rumor that has been going on is that Facebook is developing a stablecoin for users on Whatsapp in India and that if there is any credibility to this rumor, it would be a massive step forward in terms of cryptocurrency adoption.
Talking about longterm developments of cryptocurrency/digital assets, Pomp said:
“… the key piece here, and I try to stress this to people is, I fundamentally believe that every stock, bond, and currency will be digitized in the future. This is not a one-year exercise or two-year exercise and this is going take a lot of work and a lot of time”
A user, Jefferson commented:
“Same thing is happening to Credits blockchain, baked 2 years ago and keep on working and assimilate great partners for the future. The work will be shown in 2019”
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Fall in Bitcoin’s market dominance may be correlated to the fortunes of the altcoin market
The trends set by virtual assets have always highlighted the cryptocurrency market’s inherent volatility and spontaneity. Prices lack symmetry and rarely exhibit consistent growth as different factors come into play to dictate an asset’s valuation.
At press time, the world’s largest crypto, Bitcoin, had stormed past the $11,000 mark and was consolidating to push for a surge over $12,000. The rest of the altcoin market however, apart from one or two minor hikes here and there, has been relatively quiet after collectively surging in the early part of the year.
At the beginning of 2019, a significant number of crypto-assets performed significantly well in a group, wherein most assets demonstrated a prominent hike in their values with little to minor price corrections.
A majority of tokens doubled their valuation until Bitcoin breached the $6,600 resistance. Subsequently, altcoins failed to keep pace as Bitcoin continued to test more resistance limits in the market.
At present time, Bitcoin enjoyed an unprecedented 62 percent dominance in the cryptocurrency market. As its dominance primes itself to climb over the 63 percent mark, many in the community speculate this could be red flags for the altcoin market.
Major cryptocurrency enthusiasts and analysts have stated that altcoins could significantly capitulate if it so happens. However, past events offer a sliver of hope for the altcoin market.
According to CoinMarketCap, the altcoin market has been significantly affected whenever BTC’s dominance has fallen. During the bull run of 2017, Bitcoin enjoyed a dominance of 65 percent and the global market cap hit a value of $402 billion. However, in January 2018, when BTC dominance plummeted, the global market cap peaked at around $710 billion. The dominance was down by half, whereas the global market cap had almost doubled.
A major reason for the same was money funneling into other altcoins after witnessing a shift in momentum from Bitcoin to the rest of the crypto-market. The present market situation may take a similar path once BTC’s dominance falls, opening the door for other virtual assets to take advantage of the scenario.
However, the present rise of BTC is backed by much more certainty than the bull run of 2017. Hence, a repeat of the January 2018 period may be unlikely, and will happen if and only the market sentiment shifts gears drastically towards altcoins.
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