A significant portion of current cryptocurrency investors either took a break following the November 2022 crash or had never engaged with cryptocurrency before. The relatively minor decline in Bitcoin prices, which soared from $15,500 to $73,777, caused significant uproar, supporting the assumption that many were unacquainted with such fluctuations.
How Much Will Bitcoin Cost?
Cryptocurrency investors are familiar with figures like Anthony Pompliano, who recently shared insights on CNBC Squawk Box. Pompliano believes that within 12 to 18 months, Bitcoin will exceed $100,000. This forecast is echoed by many experts based on historical data, noting that past peak prices of Bitcoin occurred 12-18 months after a halving event.
The founder of Pomp Investments stated:
“At this point, the downside seems quite muted. However, it’s not possible to say definitively. External events could always occur. Yet, I don’t think it will drop below $50,000 at any point. I believe we have crossed that Rubicon.
Looking upwards, I think we will surpass $100,000 in the next 12-18 months, perhaps reaching between $150,000 and $200,000. But we will move up from here. People should not expect a 1,000% explosive movement for the rest of the bull market.”
Why Did Cryptocurrencies Fall?
Geopolitical tension led to rapid losses in Bitcoin prices. BTC has not yet recovered to even $64,000 since its last drop. Anthony Pompliano offers a different thesis on the recent declines.
“I think there are three things causing this price drop. Firstly, whenever there is a moment of fear, everyone panics, and what do they do? They still buy dollars, and thus some people are selling.
When all the news hit Twitter and social sensitivity changed very quickly, you saw many tweets about Iran and Israel, rockets, and drones, etc. A very rapid sell-off occurred. I find it hard to believe that people read Twitter and immediately rush to their computers to hit the sell button. Therefore, there must be some algorithmic trading going on.”
He might be wrong, as investors have not forgotten what the markets went through after Russia’s announcement of a “special operation” in early 2022, which could have prompted quick sales in the recent event.
