Anthony Pompliano: Bitcoin’s Decline Does Not Indicate a Bearish Trend
The scale of Bitcoin’s correction differs significantly from the declines of previous years, when the market lost up to 80% of its value, the businessman recalled. According to him, the leading cryptocurrency has become a much more mature financial instrument, and its volatility has roughly halved in recent years.
At this level of volatility, the current price decline may be closer to a bottom formation followed by a rebound than to a prolonged bearish phase. The participation of corporate investors and the launch of spot Bitcoin ETFs contribute to more restrained and controlled price movements, the entrepreneur believes.
At present, the market is increasingly concerned about deflationary scenarios rather than accelerating inflation, which reduces short-term demand for Bitcoin as a hedging instrument, Pompliano said.
As for the divergence between Bitcoin and gold price dynamics, the record growth in precious metal prices has been driven by active purchases by central banks using gold as a “tool for abandoning fiat currencies,” the businessman believes. Bitcoin, meanwhile, has not yet been recognized as a reserve asset at the level of financial regulators, which limits BTC’s participation in this trend, Pompliano explained.
Earlier, analysts from the on-chain platform Santiment stated that rising panic among traders and investors in the crypto market is actually a bullish signal indicating an upcoming reversal.
See also: "Michael Burry: Bitcoin Triggered a Chain Reaction"
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