Bitcoin to plunge below $3,000 mark: Anthony Pompliano
The bears are ruling the crypto market and 2018 has brought little cheer to the dampening spirit of the bulls. While many are still hopeful of a bull rally next year led by Bitcoin, chances appear to be very slim in the near future. After having something of bull run last week, which saw Bitcoin cross the psychological barrier of $4000, it has again come down and is hovering around $3,800 mark. At the time of writing, Bitcoin is trading at $3,809. According to Morgan Creek Founder, Anthony Pompliano, the leading cryptocurrency will fall further and the price might drop below $3,000.
Speaking in an interview with CNBC, Pompliano said that Bitcoin will bottom out only after it falls below the dreaded level of $3,000, which many experts are suspecting.
Replying to the question of whether Bitcoin’s price was correlated to traditional stocks or the FAANG (Facebook, Apple, Amazon, Netflix, and Google) stocks, Pompliano replied in negative and denied both assumptions.
It has been the same case with the FAANG stocks this year and the traditional stocks also met the same fate during the Christmas period. “I definitely agree there are some psychological components at play as the stock market pulls down,” he added.
Pompliano noted that Bitcoin’s correlation with the S&P 500 was “zero” and “near zero” with the dollar index.
This is not the first time, Pompliano has predicted the fall in price for Bitcoin. Earlier this month, he told CNBC’s squawk box that the price of Bitcoin is going to bottom out with an 85 percent reduction in value from the all-time high which saw it touch the meteoric highs of $20,000 in December 2017.
Emphasizing the fact that his forecast is based on years of experience, Pompliano said, “85% from the all-time high is about where we’ll end up. Puts it around $3,000. Came close over the weekend but probably a little bit more to fall.”
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