Anthony Pompliano, a perma-bull for Bitcoin [BTC] and the founder of Morgan Creek Capital Management, recently spoke in an interview with the host of CNBC Crypto Trader, Ran NeuNer, on the state of the cryptocurrency market. He elaborated on his opinion on why the market crashed recently.
Pompliano stated that the reason for the market to crash didn’t really matter, as there were “a whole bunch of conspiracy theories as to what happened”. This included theories such as the crash being because of Bitcoin Cash [BCH]’s hard fork, early investors in 2017 who are now reaching their cost bases, or, he proposed, people selling cryptocurrencies to buy Christmas gifts. He elaborated:
“It can be a whole host of things I tend to think that the most important thing to focus on is the longer term trend. We’re in a bear market we’re going to continue to stay in this bear market I think a lot of the technicals and historical analysis shows that we’ve got a ways to fall still.”
To back his point, he spoke about a letter he wrote when Bitcoin was at $6500, stating that it would fall 50% or more from there. This, according to him, puts a price call for $3000-$3500 still on the table. He stated:
“If we fall all the way there that’s when we’re going to see true blood in the streets and we’ll kind of see how more participants react to that.”
Pompliano also spoke about the general state of hedge funds in the cryptocurrency space, as most of them are in a loss over the year. However, he mentioned that there were a “couple of funds” that are in profit due to a managing risk well and shorting. He stated:
“There are a very large amount that are in trouble and many of them are at their long tail right. These guys have managed $20 million in assets, they’re usually young, inexperienced fund managers.”
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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