Bitcoin saw its highest price before December 2017 when the cryptocurrency hit just under $20,000. Anthony Pompliano, a partner and co-founder of Morgan Creek Digital, outlined why he thinks the price will increase. He told Yahoo Finance: “The important thing to remember about bitcoin is it is a fixed supply asset and so supply and demand economics apply.
“So if there are increases and demand you are going to see a price move up.
“I think that by the end of 2021 we will see it eclipse $100,000 and really that is just driven by more institutional interest and then also a lot more global instability that we are seeing in the early days of today.”
According to CoinDesk’s bitcoin price index, the world’s largest digital currency was at $11,726.48 at 14:30 on Friday.
Mr Pompliano insisted bitcoin will “definitely remain volatile”, adding: “We will see a lot of, in a parabolic move upwards, we will see kind of 20 to 40 percent drawdown.