Morgan Creek Digital’s co-founder, Anthony Pompliano, has stated that Bitcoin is doing exactly what it was created for.
[New Post] The psychology and magic of Bitcoin.
The recent cross of $10,000 feels different this time and it reinforces the idea that Bitcoin is doing exactly what it was built to do. https://t.co/v7bj35CTlr
— Pomp 🌪 (@APompliano) February 10, 2020
“The psychology and magic of Bitcoin. The recent cross of $10,000 feels different this time and it reinforces the idea that Bitcoin is doing exactly what it was built to do”.
Pompliano refers to a new blog post in which he notes that over the weekend Bitcoin exceeded $10,000 for the third time in its history.
This happened already in December 2017, when in just 18 days it peaked at $20,000 after exceeding $10,000, and in mid-2019, when bitcoin recorded a parabolic increase from about $3,500 to almost $14,000 in a few weeks.
This time, however, everything looks very different. For one thing, there’s no trace of hyperbolic growth, considering that for a few months now it has been trading between $7,000 and $9,000. In other words, it is growing much slower than the previous two, and there is no trace of a parabolic trajectory: the current growth seems much more sustainable and organic.
“And it leads me to believe that $10,000 will end up meaning a lot more this time, than it has in the past”.
Furthermore, Pompliano points out that although there is a kind of sense of excitement when it comes to $10,000, in reality, the price of bitcoin is still 50% lower than its historical high.
According to Pompliano, exceeding this threshold remains an important milestone in Bitcoin’s history, and it is not even the only positive sign.
The third halving is expected in May 2020, and many investors are likely to be bullish between the end of April and the beginning of May.
In addition, the trader emphasizes that if market demand for bitcoin actually continues to increase, given that BTC’s supply is designed to be inelastic to the market, the consequence would inevitably be an increase in its price, although it is necessary to always keep in mind that the increase in demand is by no means a certainty. But if this were to happen, then Bitcoin would be doing nothing more than what it was designed to do.
The co-founder of Morgan Creek Digital adds that he hopes that this, and any other future increases in the price of bitcoin, will happen slowly and steadily because parabolic increases are unlikely to be sustainable. In fact, he makes it clear that the markets are often too irrational, due to the fact that the people who constitute these same markets are incredibly irrational, emotional, sectarian and greedy.
Hence he goes so far as to speculate that, in reality, as the price rises, more and more people will become interested in bitcoin and start buying it, and so price growth will accelerate even more: this could lead to “big fireworks” in 2021.
According to Pompliano, there are now about 22 months to keep an eye on, which may be a short period of time, but it may also seem like an eternity.
Today there is more information available for investors and better infrastructure, but Bitcoin still remains “an animal unlike anything the finance world has ever seen before”.