Why Can’t Bitcoin Experience Massive Rallies Anymore? Anthony Pompliano Says the “Wild Era” Is Over and Explains Why

Anthony Pompliano, Founder and CEO of Professional Capital Management, discussed recent Bitcoin (BTC) price movements on the Squawk Box program. According to Pompliano, Bitcoin is moving away from its old “wild” fluctuations and entering a phase of institutional maturity.

Anthony Pompliano, a leading figure in the cryptocurrency world, analyzed Bitcoin’s recent price pullback and the future of the market. Pompliano attributed the failure of the massive price increases expected by Bitcoin investors to the asset’s decreasing volatility.

Pompliano, noting that Bitcoin has gained 100% in value in the last two years and 300% in the last three years, stated that its compound annual growth rate (CAGR) over the last ten years is a massive 70%. However, he made an important observation regarding recent price movements:

“Bitcoin’s volatility is actually decreasing. Many people were expecting a peak of $150,000 or $200,000, but that didn’t happen. On the other hand, the sharp 80% drops we’ve seen in the past are no longer occurring.”

Pompliano, citing Matthew Sigel’s theory from VanEck, stated that if Bitcoin’s volatility were halved, past 80% drops would be replaced by 40% corrections. He argued that Bitcoin’s fall from $126,000 to the $80,000 range corresponded precisely to this 40% “new normal” correction.

Pompliano stated that the future of the financial world will be built on two main axes, highlighting the importance of artificial intelligence (AI) and tokenization:

• Companies will increase their revenue and improve operational efficiency by using AI technologies.
• Companies will add assets like Bitcoin, stablecoins, or tokenized gold to their balance sheets to protect the capital they raise through AI.

Pompliano stated that platforms like Coinbase and Robinhood are moving towards becoming “the exchange for everything.” He noted that this vision aims to make not only cryptocurrencies, but also stocks, prediction markets, and all other assets available for trading 24/7 under one roof.

*This is not investment advice.