Why will the price of bitcoin grow 20 times by the end of 2021?

Over the next 15 months, bitcoin (BTC) could soar in price by 15-20 times, predictsAnthony Pompliano,representing the Morgan Creek Fund. The businessman made similar forecasts earlier. Moreover, he did not rule out that BTC could even surpass gold in terms of capitalization.

At the end of this week, Pompliano sent a letterinvestors, in which he emphasized that in the long term, the trend for the strengthening of bitcoin is still dominant. Despite periodic pullbacks, cryptocurrency fundamentals continue to improve.

The co-founder of Morgan Creek encouraged investors to invest between 1% and 10% of their capital in Bitcoin and reminded them that half of his portfolio is already invested in the largest digital currency.

Pompliano pointed out a key factor that, according toin his opinion, it creates conditions for the growth of the value of BTC. This is the monetary policy of the US Federal Reserve System. The regulator lowered the discount rate to stimulate lending amid the coronavirus pandemic.

In parallel, the Fed launched a programstimulating business activity and included a printing press. The release of money supply will inevitably provoke a surge in inflation. In this situation, the demand for gold and bitcoin, which do not depend on central banks, will increase.

Pompliano also added that many companies have alreadyinvest in cryptocurrency. For example, MicroStrategy has invested more than 80% of its capital in Bitcoin. Another company, Square, recently announced that it had invested $50 million in digital currency.

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