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Anthony Pompliano Predicts Bitcoin Price Could Fall Futher In The Short Term

Anthony Pompliano says Bitcoin doesn't correlate with the U.S. equity market. He also thinks the price will further be below $3, 000

Anthony Pompliano, the founder of Morgan Creek Digital Assets, joined CNBC’s “Squawk Box” to discuss cryptocurrency prices and its correlation to the stock market. This recorded the worst-ever pre-Christmas session.

Noncorrelation of Bitcoin to the U.S. equity market

“Bitcoin is roughly a non-correlated asset. If you look at the correlation between digital assets and the S&P 500 over the last 180 days it’s at 0. If you look at it compared to the dollar index it’s near zero. It’s proven it is uncorrelated and we expect that to continue,” Anthony Pompliano explained. Also stating the non correlation of Bitcoin to the equity market.

Cryptoassets enjoyed a good rally leading up to Christmas even though prices started declining again on Christmas day to a little bit below $3, 800. Bitcoin seemed to have led the equity market up and then pulled it down, even though there’s no data to prove this assertion. U.S. stocks suffered the worst ever pre-Christmas session but rebounded a little on Boxing day. Pompliano agrees that some “psychological component” might be at play here between the equities market and crypto.

Short-term bearish prediction

Even though top executives at major crypto firms have predicted that the price of bitcoin will bounce back in the first quarter of 2019 with institutional investors coming in. Anthony Pompliano, however, predicts that short-term he expects that the bottom will fall further. He thinks it will fall under $3, 000.

Notwithstanding the short-term bear market though, Anthony Pompliano believes the features and the fundamentals of Bitcoin make it preferable in the long term. Using his favorite slogan “Long Bitcoin; Short the Bankers, he went on to highlight the qualities that will make the technology desirable for many people in the long term which will then drive price upward.

“There’s a saying we have in crypto that says “Long Bitcoin, Short the bankers”. Its this idea that cryptocurrencies are incredibly transparent; it’s driven by maths and software code. I think there’s a lot more lack of transparency and nefarious activities that goes on in the traditional financial markets. Crypto is still just very small. We have got a fixed supply of assets. If an increase in demand comes in you are going to have an increase in price,” Anthony Pompliano explained.

Roger Ver, one of the leading crypto evangelists, has also said he’s more concerned with the fundamentals and technical development rather the short-term price swings. Many have said this is like gambling since no one can tell for sure which cryptoasset will gain massive demand or adoption.

Let us know what you think on Twitter. Are you investing for the future or watching the price swings closely?

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Anthony Pompliano Predicts Price Could Fall Futher In The Short Term
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Anthony Pompliano Predicts Price Could Fall Futher In The Short Term
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Anthony Pompliano says Bitcoin doesn't correlate with the U.S. equity market. He also thinks the price will further below $3, 000
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Akeredolu Feranmi

Feranmi is a guest author at Coinpedia.

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