Anthony Pompliano, a perma-bull for Bitcoin [BTC] and the founder of Morgan Creek Capital Management, recently spoke in an interview with the host of CNBC Crypto Trader, Ran NeuNer, on the state of the cryptocurrency market. He elaborated on his opinion on why the market crashed recently.
Pompliano stated that the reason for the market to crash didn’t really matter, as there were “a whole bunch of conspiracy theories as to what happened”. This included theories such as the crash being because of Bitcoin Cash [BCH]’s hard fork, early investors in 2017 who are now reaching their cost bases, or, he proposed, people selling cryptocurrencies to buy Christmas gifts. He elaborated:
“It can be a whole host of things I tend to think that the most important thing to focus on is the longer term trend. We’re in a bear market we’re going to continue to stay in this bear market I think a lot of the technicals and historical analysis shows that we’ve got a ways to fall still.”
To back his point, he spoke about a letter he wrote when Bitcoin was at $6500, stating that it would fall 50% or more from there. This, according to him, puts a price call for $3000-$3500 still on the table. He stated:
“If we fall all the way there that’s when we’re going to see true blood in the streets and we’ll kind of see how more participants react to that.”
Pompliano also spoke about the general state of hedge funds in the cryptocurrency space, as most of them are in a loss over the year. However, he mentioned that there were a “couple of funds” that are in profit due to a managing risk well and shorting. He stated:
“There are a very large amount that are in trouble and many of them are at their long tail right. These guys have managed $20 million in assets, they’re usually young, inexperienced fund managers.”