Tuesday , August 9 2022

Opinion: Bitcoin will find the "bottom" at the level of 85% below the historical maximum


Anthony Pompiano, co-founder and managing partner of venture capital firm Morgan Creek, believes that the first encryption could reach a "bottom" of 85% below the historic maximum. He said this on Monday in the Squawk Box program at CNBC.

"Everything will be somewhere 85% below the maximum historical, that is, somewhere around $ 3,000. We approached it at the end of the week, but we'll probably have to get down a bit, – said Pomfiano, adding that he bases his prediction on his experience in space cryptocurrency.

During the transfer, the presenter noted that many investors have lost confidence, suggesting that the chances of their return to Bitcoin after losses this year may turn out to be low. In response, Pomfiano said that Bitcoin was overvalued when it reached its maximum historical, and that a healthy patch was now being observed.

Bitcoin was overvalued in December 2017. This year, sellers were more buyers, and therefore the price drops.But remember three things.First, Bitcoin is a transaction platform.This is the safest platform in the world and it must be of some value.It can not cost anything. Second, it is the most profitable asset in the past 10 years, and during the longest bull rally, it spun around S & P, Dow Jones and NASDAQ, etc. During this period, it fell twice by 80%, but in the past two years, it has increased by 400%. Third, all this was achieved by retail investors ", Said Pomfiano.

In response to a question from one of the participants in the debate on whether Bitcoin could repeat the scenario of Tulipamania, the head of Morgan Creek noted that if in 2017 buyers were mainly retail, now financial institutions are beginning to connect.

"It is not said often, but most of them do not buy on the stock exchanges.They buy in the OTC market, which is not transparent.Therefore, we are now witnessing the washing of retail investors", – Pomfiano added

He also promised that Morgan Channel will not refuse to invest in Bitcoin, but on the contrary, will buy during the price cuts, since "he has a very deep faith in Bitcoin."

Earlier, Anthony Pompiano said that many hedge funds cryptocurrency soon forced to announce the closure, while ICO projects will be penalties for bankruptcy ahead. According to him, this is a natural process of cleaning the industry from "tourists".

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