Anthony “Pomp” Pompliano, founder and partner at blockchain and crypto investment firm Morgan Creek Digital Assets, has been fielding a flurry of phone calls from his clients about the plummeting price of Bitcoin – off 75% from its all-time-high nearly one year ago.
In an open letter, Pomp fans the flames with the long view, reminding clients that “Bitcoin is acting as we anticipated” – at a new yearly low below $4,500.
Bitcoin’s fundamentals haven’t changed
“It is a fixed supply asset with increasing demand that will be subjected to the benefits of supply and demand economics.”
It doesn’t behave like the rest of them
“Bitcoin is not a traditional asset. There is no monetary policy decision that will be the catalyst for a recovery. The government can’t deem it too big to fail. There is no one who can step in and halt trading. Bitcoin lives and dies on its own.”
Bitcoin has volatile swings on a frequent basis
“Bitcoin and crypto will survive. In fact, these are the dog days of a bear market that ensure that the future will be even more exciting than the past.”
Bitcoin is down over 75% from its all-time high.
It is still the best performing asset class in the last 5 years.
It has dwarfed stocks, bonds, currencies and commodities since inception too.
Ignore the noise, trust the code.
— Pomp ? (@APompliano) November 21, 2018
Pomp adjusted his year-end price prediction back in August, when he moved the goal posts for Bitcoin’s next parabolic climb – to $50,000 – from 2018 to December 2022 or January 2023.[the_ad id="42537"] [the_ad id="42536"]
At that time, when Bitcoin was trading around $6,000, he also noted that the world’s most popular cryptocurrency is more likely to near $3,000 before it heads back up to $10,000.
Pomp, who writes often about the need for traders to control emotions, touts discipline and a commitment to “your long-term thesis/plan.”
You can read his open letter, “The world is not ending,” here.