Price and Value of Bitcoin Completely Decoupling, Says Morgan Creek’s
Morgan Creek Digital co-founder Anthony Pompliano is assessing the state of Bitcoin (BTC) after the top crypto asset by market cap lost two-thirds of its value since reaching a new all-time high last November.
In a new interview with Fox Business, Pompliano explains how Bitcoin’s price drop represents a divergence from its actual value because the underlying fundamentals remain strong.
“We are watching a divergence. Price and value are completely decoupling right now for Bitcoin. What I mean by that is, price is down from a $69,000 high in November to around $23,000 today.
But hash rate hit an all-time high today. The Bitcoin network has never been more secure than it is today. If you then go take a look at the Bitcoin wallet addresses with 0.01 Bitcoin, 0.1 Bitcoin or 1 Bitcoin in them, those all three have all hit all-time highs.
The Lightning Network capacity also is hitting an all-time high.”
The Bitcoin bull goes on to say it’s only a matter of time until BTC’s price and fundamental value converge once again.
“That decoupling as the fundamentals continue to hit all-time highs and strengthen while price is falling, I think that at some point fundamentals and the value of Bitcoin will meet price.
The question is just where and when that happens.”
Pompliano concludes by offering insights into how wealthy mainstream investment firms sell their riskiest assets first when they need capital, such as when the stock market is volatile.
“If you look at the institutional folks, Bitcoin began to get institutionalized and [it] is the riskiest thing in their portfolio.
So, if they’re going to go risk-off, they sell Bitcoin, and they happen to have a lot of Bitcoin because they have a lot of money in their portfolio.
So Bitcoin started to dump just like every other risk asset went down as well the last eight months.”
At time of writing, Bitcoin continues its slide and is down another 4.5% over the last 24 hours to $21,942.
Just a week ago, BTC was trading above $31,000.
I joined Fox Business to discuss bitcoin and the macro environment.
Value and price are diverging. Weak hands are selling to strong hands. We have been here before.
— Pomp ? (@APompliano) June 13, 2022
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