Anthony Pompliano, Partner at Morgan Creek Digital Asset, asserted that there are strong chances Bitcoin’s market will grow 15-20 times in the next 15 months.
In advice to investors, Pompliano suggested dedicating up to 10% of their portfolios for Bitcoin. He himself has put 50% of his wealth into cryptocurrency and has recommended others to put capital in crypto assets. He has laid out strong factors that may push the price value upward in the future.
Catalyst Factors for Bitcoin
At the top of the list, Federal Reserve’s policies could provide great stimulation for crypto markets. In April, Federal Reserve set the interest rate at the lowest position to contain the effects of COVID-19. In its latest talk, the central bank is agreed to cut interest rates further in the future.
The debate continues on the incoming relief package, and congress has given a positive signal for the $3 trillion stimulus package. From the start of 2020, the balance sheet of the Federal Reserve has jumped by 75 %. The 2 percent inflation rate is also imminent due to the distribution of the stimulus package.
Big Crypto Inflows
Pompliano said investors have fears of increasing inflation and this fear has inspired investors to look for inflation-free assets, such as Bitcoin, real state, and gold. These assets can exceed in performance of traditional equities and stocks.
Due to institutional inflows into crypto markets, Bitcoin is up 50% over the last 12-months. Fidelity Investments suggested dedicating 1-5 of a portfolio for Bitcoin which is positive for crypto space as Fidelity has a management of assets worth $3.3 trillion. A prominent asset fund manager Stone Ridge claimed it has Bitcoin worth $15 million under its management. Paul Tudor has invested 1-2 of his total wealth into Bitcoin Futures and his portfolio consists of $22 billion.
Recently, MicroStrategy invested $425 million in purchasing the top digital asset Bitcoin. Payment company Square put $50 million in Bitcoin and has a plan to buy more BTC. All these investment show institutions have recognized the high potential of Bitcoin.