The plunge in the value of Bitcoin in the last couple of weeks is setting the tone for something better as explained by Anthony Pompliano, the Morgan Creek Digital Partner and renowned crypto enthusiast.
While speaking on CNBC’s Squawka box, Pomp answered questions regarding the recent market performance and why he has remained so bullish about the chances of bitcoin surviving the bearish conditions.
The belief system which kept many investors in the crypto space seems to have been lost with the new-asset class now down by over 80% from the last year high. Whether anyone who invested in BTC at $19,000 would ever get in at this point was the question posed to Anthony.
First, he described that period (December 2017) as a time when Bitcoin was “overvalued” and suggested that the prices are down to where they should have been. Despite the slump, Bitcoin was still the best performing “asset class over the last ten years and even outperformed SMP, DELL and other major stocks during their longest bull runs” he said.
Incremental New Buyers On The Way
The number of retail buyers who have lost faith in Bitcoin may be increasing, but that is not enough to stop the growth of the asset-class as Pomp explained next.
“I think what’s important to remember is that through 2017 all of the buyers were retail [….] and so now what you are seeing now in 2018 as the price has run down, you’re sure to see institutions come in.”
“Most of these institutions are not buying on these exchanges, they’re buying in the OTC market which we don’t have great transparency into or insights, and I think what we’re seeing is the washout of these retail investors and now the institutions such as Fidelity Investments, etc” are coming in.
In a nutshell, the Morgan Creek Digital partner is banking on bitcoin remaining bearish for the rest of 2018 since it will lead to a brighter 2019 for everyone who hangs in.