Since starting a downward trend on November 14th, Bitcoin (BTC) has been on a rollercoaster ride that just a couple of days ago saw itself surpass the $4,000 barrier after hovering in the $3,200-$3,300 range in the past few days. Before the middle of that month, the world’s premier crypto asset was firmly over $6,200, with talks of a possible surge a la last year.
However, the collapse began, and since it took place, there have not been any signs of an imminent turnaround, other than it being briefly worth more than $4,000 not too long ago. In fact, just when it broke the $4,000 threshold last week, it began to slowly lose value again and it now trading at $3,803.14 at the moment of writing this piece.
A substantial part of the industry has been speculating on what the future may hold for the price of Bitcoin. Some claim that it will go up next year following a series of critical events (such as Chinese New Year, Yahoo Japan plans to launch a cryptocurrency exchange in the country, or the launch of the Bakkt cryptocurrency platform for trading bitcoin futures,) while others, like Calvin Ayre, predict that it will be nearly worthless.
Bitcoin Has “Lower to Go”
The latest public figure to weigh in on the debate is Anthony Pompliano, who is the founder of Morgan Creek Digital Assets, expressed that he thinks BTC has lower to go, despite the recent mini-surge that saw it surpass $4,000. He offered his thoughts about the matter to an American news network on December 26th.
During the interview, Pompliano (an active social media commentator on crypto matters) made clear that he belongs to the group that thinks Bitcoin’s value will not revive from its ashes in the short term.
To be precise, he thinks that the Bitcoin markets will hit rock bottom only when the price goes as low as $3,000 or even further down. “Short term, I actually think we have lower to go,” he said in the interview.
Not too long ago, back in November, Pompliano forecasted that Bitcoin would fall to the $3,000 range, a thing that actually took place just a few days later to the surprise of the crypto industry as a whole.
Not only has Bitcoin fallen down in the last few weeks, but also the top 20 altcoins in the industry by market cap have suffered a severe hit as the year winds down. For example, Ripple (XRP) lost more than 6 percent of its value in the last 24 hours (it is exchanging hands at $0.36,) and Ethereum is down 8.86 percent, being worth $124.
Pompliano made it clear that the Bitcoin price is not correlated with traditional or FAANG stocks (Facebook, Apple, Amazon, Netflix and Google.) Those have also suffered from a bear-ish market in 2018.
“I definitely agree there are some psychological components at play as the stock market pulls down,” he said.
By Andres Chavez