Anthony Pompliano Names Current Rout ‘Bitcoin Pullback for Ants’

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Written By Maya Cantina

Wed, 20/03/2024 – 16:30

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Anthony Pompliano, the founder of Pomp Investments, says the recent price volatility on Bitcoin is “a pullback for ants,” downplaying concerns about the cryptocurrency’s fluctuating value. He made this statement while discussing market sentiment on Bloomberg surrounding Bitcoin, meme coins and venture capital. Pompliano gave his insight into the current state of the market.

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Historical resilience of Bitcoin

Pompliano highlighted that the recent price variations witnessed on the Bitcoin market over the past 18 days are not unusual. He pointed out that, historically, during bullish periods, there have been multiple instances of 30% drawdowns, making the current 15% drawdown seem relatively insignificant in comparison.

Emphasizing the normalcy of Bitcoin’s price hovering around $65,000, Pompliano explained that volatility is expected in both upward and downward trajectories. He described the current drawdown as having a small overall impact, considering Bitcoin’s long-term compounding growth of approximately 60% over the last 10 years.

While reflecting on Bitcoin’s past performance, Pompliano recalled the significant surge in 2017, when the price skyrocketed from $1,000 to $20,000. He noted certain patterns observed with Bitcoin, such as price crashes following the approval of spot ETFs.

However, Pompliano noted two major historical events in Bitcoin’s journey: the occurrence of several all-time highs followed by price crashes below those highs, a phenomenon unprecedented in Bitcoin’s history, and hitting an all-time high just before a halving event.

Venture capital on meme coin frenzy

Shifting the focus to meme coins and venture capital, Pompliano observed that there have been significant inflows of capital into the venture capital market. He took an indifferent stance toward MicroStrategy’s ownership of 1% of all Bitcoin, unlike renowned gold advocate Peter Schiff. He insisted that it was the outcome of a free market distribution.

Drawing a parallel between meme coins and traditional markets, Pompliano said meme coin trading was like gambling and video games, where individuals experiment to gauge profitability. He emphasized that meme coins are not fundamentally different from stock market trading, where investors speculate on the value of stocks.

In conclusion, Pompliano’s remarks suggest that while short-term price volatility may occur, the long-term trajectory of Bitcoin remains positive, and emerging trends in meme coins and venture capital reflect the market sentiment of the crypto world.

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