Pompliano: The likelihood of a significant drop in Bitcoin in Q1 of next year is very low
Cryptocurrency entrepreneur Anthony Pompliano believes that Bitcoin's failure to experience an exciting price surge by the end of this year may actually be a factor in avoiding a severe drop in the first quarter of next year. In an interview with CNBC, Pompliano pointed out that, based on the current level of volatility, the likelihood of a significant drop in Bitcoin is low. He stated, "Given the current volatility, it would be very surprising if Bitcoin were to experience a 70% or 80% drop while volatility has already been significantly compressed."He believes that the short-term disappointment among Bitcoin holders regarding the asset's failure to reach the $250,000 target this year overshadows its stronger long-term performance. "We must remember that Bitcoin has increased by 100% over two years and nearly 300% over three years. It has been compounding," Pompliano said, "It has always been a 'monster' in the financial markets." Pompliano noted that the decline in its volatility has largely been overlooked compared to the market's focus on Bitcoin's price drop since the beginning of the year. "We did not see the 'surge peak' that people expected at the end of the third quarter or the beginning of the fourth quarter, but similarly, we did not see the kind of drop of up to 80% that people usually expect."
