The cryptocurrency market has seen some record lows this year, with Bitcoin dropping to less than a third of its price since last year. Now Morgan Creek Digital Assets founder, Anthony Pompliano is suggesting that the price of Bitcoin could drop even further.
Pompliano said that the price of Bitcoin could fall as low as below $3,000, which, given that the current price stands at $3,741, would signify around a 20% decrease. The founder said this in a recent interview with CNBC on December 26th. As an active commentator on the cryptocurrency market on his social media accounts, this was one of many such predictions that he has made in the past.
Pompliano’s predictions have gained some credibility in the recent months as one of his past predictions about the price of Bitcoin that he made in November this year ultimately came true. He had said that he expected Bitcoin’s price to drop below $3,000 which ultimately did happen, although recovering soon after.
In the interview, he said,
“Short term, I actually think we have lower to go [than $3,000].”
It should be noted, however, that the stock market has also experienced some turbulence during the past months. He denied that there was any correlation between the behavior of the big software company stocks, namely Apple, Amazon, Netflix, Facebook, and Google, and Bitcoin’s price performance in the market.
However, he did accept that the behavior of the stock market had some indirect effect on the price of Bitcoin and cryptocurrencies in general. Talking about the subject, he said,
“I definitely agree there are some psychological components at play as the stock market pulls down.”
However, he was quoted saying that he believes there is “zero correlation” between Bitcoin and the S&P 500 as well as a close-to-zero correlation with the Dollar Index.
This is not the first time in recent weeks that an analyst has posted a bearish outlook on the cryptocurrency market. The veteran trader Tony Vays recently suggested that Bitcoin could be about to experience a significant drop if it closed below its 50-month moving average.
This is a deviation from what many other analysts are saying about next year’s Bitcoin prices, though. They have taken a much more optimistic, bullish approach. The discrepancy has likely been borne out of the turbulence in the market, but it is only a test of time that will tell us whose predictions turn out to be true.