By CCN Markets: The bitcoin price has been going sideways for nearly two months now, but crypto bulls believe that…
Bitcoin perma-bull Anthony Pompliano is the latest to join this bandwagon, telling CNBC in an interview that the cryptocurrency will find its way into “every institutional investor’s portfolio at some point in the future.”
When CNBC’s Joe Kernen asked Pompliano about the impact of bitcoin futures trading platform Bakkt on bitcoin adoption by institutional investors, the Morgan Creek Digital Co-Founder said:
"The more infrastructure that's built around this, the more likely it is to never go away... we're at a tipping point now where Bitcoin is here to stay."
Pompliano’s comments about institutional inflows into bitcoin, and his claim that the cryptocurrency will find a place in the portfolio of every institutional investor, make a lot of sense. That’s because institutional investors are reportedly pouring in $200 million to $400 million into crypto assets every week.
And that’s the report from just one source, so there could be a lot more money flowing into the crypto asset from the institutional side.
Institutional investors have started looking at bitcoin as an alternative asset class.
That’s not surprising as the cryptocurrency is enjoying an inverse correlation with the stock market, solidifying its status as a new safe-haven asset that could replace gold.
This is why asset managers are busy adding bitcoin to their portfolios as the U.S. government’s policy of adding more debt and printing more dollars could eventually lead to an economic slowdown.
The fact that bitcoin has limited supply and cannot be manipulated by a central authority has made it an attractive bet for institutional investors.
However, Pompliano also pointed out that the price of the crypto asset could be under regulatory pressure in the short term. But he believes that as more and more people become aware of bitcoin and easier ways to purchase the cryptocurrency spring up, demand for the same will rise.
Research shows that almost 40 percent of Americans are keen to buy BTC. Throw in rising institutional interest and the developing infrastructure as Pompliano points out, and his six-figure bitcoin price target might turn into reality someday.
Last modified (UTC): August 21, 2019 3:31 PM