Pompliano: Low Likelihood of Bitcoin Experiencing Major Pullback in Q1 Next Year

BlockBeats News, December 24th, cryptocurrency entrepreneur Anthony Pompliano believes that Bitcoin's failure to experience an exciting price surge at the end of this year may instead be a factor in avoiding a significant crash in the first quarter of next year.

Pompliano, in an interview with CNBC, pointed out that based on the current level of volatility, the likelihood of a significant Bitcoin drop is low. He stated: "Based on the current volatility, if Bitcoin were to drop by 70% or 80% under conditions where volatility has already substantially compressed, that would be very surprising."

He believes that the short-term disappointment of Bitcoin holders for the asset's failure to reach the year-end $250,000 target has overshadowed its longer-term strong performance. "We have to remember that Bitcoin has risen 100% in two years, nearly 300% in three years. It has been compounding growth," Pompliano said. "It has always been a 'monster' presence in the financial markets."

Pompliano stated that compared to the market's focus on Bitcoin's price decline since the beginning of the year, the decline in its volatility has been largely overlooked. "We did not see the expected 'peak surge' at the end of the third quarter or the beginning of the fourth quarter, but likewise, we did not see the typical 80% crash that people usually expect."