- Large companies like Square and PayPal are reportedly eating up new Bitcoin supply
- Pompliano said the current microenvironment is “rocket fuel” for Bitcoin
- The only way for supply and demand to equilibrate is at a higher price, he said
With Bitcoin just a few amount below its previous all-time, Anthony Pompliano, the founder of Morgan Creek Capital, said he wouldn’t be surprised to see the benchmark cryptocurrency at a price point of $100,000 by the end of 2021.
Pompliano, whose company assists companies and foundations in investing in blockchain technology, told CNBC the current supply issuance of Bitcoin wouldn’t be able to keep up with the increasing demand from various sectors.
The recent Bitcoin halving reduced the supply issuance to 900 BTC per day. In today’s environment, this is severely limited because big companies such as Square and PayPal are reportedly buying 100% of these newly mined Bitcoins.