Amber

Anthony Pompliano: Bitcoin Could Hit $1M and Become Global Reserve Currency

| Updated
by Daria Rud · 3 min read
Anthony Pompliano: Bitcoin Could Hit $1M and Become Global Reserve Currency
Photo: Depositphotos

While Bitcoin is experiencing an incredible rally, the US largest bank JPMorgan Chase is warning about risks associated with investing in BTC. In particular, volatility is the biggest issue.

This week, Bitcoin (BTC) surpassed the $50K mark for the first time in its history. Just after crossing this milestone, Bitcoin hit a new all-time high above $52,000. Some analysts believe there is even more to come. For example, Morgan Creek Digital founder Anthony Pompliano is convinced that by the end of the decade, Bitcoin will reach $500,000. Besides, the entrepreneur predicts Bitcoin will rise to $1 million to eventually become a global reserve currency.

During CNBC’s “Beyond the Valley” podcast, Pompliano said:

“I think that bitcoin will eventually rise to become the global reserve currency. I think bitcoin will eventually be much much larger than the gold market cap. It will eventually take that seat at the kingdom of being that global reserve currency of the internet generation.”

Further, Anthony Pompliano spoke on the background for the Bitcoin surge. He said:

“There were trillions of dollars that were printed and injected into the economy and everyone from individuals to financial institutions and corporations ran around the world looking for the best way to protect their purchasing power, they ultimately decided it was bitcoin.”

As of the press moment, Bitcoin is trading around $51,780. Its market cap is $964.8 billion.

What’s Behind Bitcoin Rally that Pompliano Is Talking About?

The major factor that triggered Bitcoin’s surge is a growing interest from institutional and retail investors. A number of big-name companies started investing in Bitcoin. For instance, Tesla Inc (NASDAQ: TSLA) announced its $1.5 billion Bitcoin purchase on February 8. Besides, the company revealed that it intends to accept Bitcoin as a form of payment in the near future.

The world’s largest asset manager BlackRock Inc (NYSE: BLK) followed Tesla and invested in Bitcoin. BNY Mellon, Twitter Inc (NYSE: TWTR), Visa Inc (NYSE: V), and Mastercard Inc (NYSE: MA) also added Bitcoin to their balance sheets.

JPMorgan’s Concerns About Bitcoin

While Bitcoin is experiencing an incredible rally, the US largest bank JPMorgan Chase (NYSE: JPM) is warning about risks associated with investing in BTC. In particular, volatility is the biggest issue. According to Nikolaos Panigirtzoglou, global markets strategist at JPMorgan, Bitcoin is “five times more volatility than gold.” To reduce this difference, institutional adoption is essential.

Panigirtzoglou said:

“The faster the pace of institutional adoption, the quicker that convergence in volatility will take place.”

At the beginning of 2021, JPMorgan said that Bitcoin is now competing with gold. In addition, JPMorgan released a note to its clients and suggested a “theoretical” long-term price target for the currency of $146,000.

Bitcoin News, Cryptocurrency news, Currencies, Market News, News
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

Related Articles
EarnBet