The price of Bitcoin has plunged by more than 15 percent from its 2019 high of $13,868.44. But that is not deterring investors from making bold bullish predictions for the cryptocurrency.
Anthony “Pomp” Pompliano, co-founder & partner of Morgan Creek Digital Assets is the latest to join the rank of bulls who believe Bitcoin price could hit the $100,000 level by 2021. The former Facebook executive borrowed his bullish bias from a so-called halving event next May that will slash the supply rate of Bitcoin by half. That would make the cryptocurrency scarcer than it already is. On the other hand, an increase in demand would prompt people to bid for Bitcoin at higher rates.
“Supply-Demand economics remain valid,” reasoned Pomp. “They are a great way to determine the market price. So, if the demand for a fixed-supply asset increases, we continue to see price appreciation.”
Bitcoin surpassing $10,000 got people talking…
Bitcoin hitting $100,000 would get the world talking.@APompliano has a $100K price prediction for 1 BTC by the end of year 2021 ?
— Jessica Walker ?? (@Jessicaw_tv) July 4, 2019
Halving and Bitcoin Price
Halving has historically done well to Bitcoin.
Every four years, the cryptocurrency’s underlying algorithm reduces the supply of Bitcoin by half. In the beginning, the cryptocurrency’s daily issuance rate was close to 7,200 BTC at a block reward of 50 BTC. Following the first halving in 2012, the regular issuance got reduced to approx 3,600 BTC with block reward going down to 25 BTC. And in the next, the numbers got slashed another half — 1,800 BTC daily issuance at a block reward of 12.5 BTC.