Anthony Pompliano: Bitcoin Volatility Has Not Derailed Long-Term Growth

Pompliano says Bitcoin’s sharp drawdowns remain part of its long-term cycle, despite extreme fear and heavy liquidations.

Bitcoin has continued its unprecedented southbound travel as macroeconomic and political trends put the market in disarray. Prices have tumbled over the past week, with most assets losing over half their value. And as expected, this has raised concerns among market participants.

But even with the evident market weakness, prominent market analyst Anthony Pompliano believes Bitcoin’s growth remains intact. According to the analyst, the OG coin’s recent swings remain part of a long-running market cycle rather than a sign of structural decline.

BTC Slips Below $60K as Bearish Sentiment and Liquidations Mount

As per TradingView data, BTC fell below $60,000 on Monday morning, erasing over 50% from its peak value. At the time of writing, the firstborn coin has recovered to trade at $65,976. Even so, the asset remains down by more than 7% on a daily basis.

Image Source: TradingView

As it’s been recently, Bitcoin’s market sentiment remains firmly fixed in the bearish zone. Adding to that, the Fear & Greed Index has dropped to a yearly low of 9. For the uninitiated, such low figures indicate extreme fear among market participants.

As of now, the OG crypto sits below the 200-day SMA, which points to a sustained weak trend. Even more, the asset posted only 10 positive sessions in the past four weeks. Generally, setups often follow sharp price swings and forced liquidations, as highly leveraged traders are pushed out when prices move quickly.

Image Source: CoinGlass

Liquidation data confirms the pressure and current market volatility faced by the blue-chip asset. Based on data from CoinGlass, the crypto markets lost about $2.58 billion in just one day, mostly tied to long positions. A sharp price drop triggered $817 million in ETF liquidations within four hours, further reinforcing the current market instability.

Bitcoin’s Repeated Drawdowns Are Part of Its Growth Story, Says Pompliano

Despite Bitcoin’s recent stress, Pompliano maintains that volatility has always defined the coin’s rise. According to the veteran analyst, the OG coin jumped from a fraction of a cent to over $126,000 over roughly 15 years. And during that time, the asset has endured repeated market drops. 

“Bitcoin is a volatile asset. It went from $0.01 to $126,000 in about 15 years. There were many 50-85% drawdowns along the way,” Pompliano said.

The analyst also mentioned that BTC has averaged a crisis-scale decline every 18 months over the past decade. Even at that, long-term holders continue to ignore short-term fear. 

Pompliano pointed out that network activity is steady, even in the face of the current market atmosphere. According to him, critics often celebrate downturns, only to see the OG coin recover strongly during bull markets. He also stressed that currency debasement favors scarce assets over time, thus reinforcing BTC’s long-term appeal.