Bitcoin entrepreneur Anthony Pompliano says Bitcoin’s lack of exciting year-end price increases could help prevent a major collapse in the first quarter of next year.
“Given the current volatility, it would be very surprising that even though Bitcoin volatility has reduced significantly, we could still see a 70% or 80% drawdown,” Pompliano said in an interview with CNBC on Tuesday.
Pompliano said Bitcoin (BTC) holders’ short-term disappointment in not reaching $250,000 in assets this year overlooks broader performance. “You have to remember that Bitcoin is up 100% in two years. It’s up almost 300% in three years. It’s compounding,” he said.
“This is a monster in financial markets,” he added.
Pompa points out that Bitcoin “doesn’t have a huge drawdown of 80%”
Pompliano said that while the fall in the price of Bitcoin assets has been in the spotlight since the beginning of the year, the decline in Bitcoin’s volatility has gone largely unnoticed by Bitcoin holders.
“We didn’t have the explosive top that people were expecting at the end of the third quarter or the beginning of the fourth quarter, but we also didn’t see the big 80% drawdown that people would normally expect,” he said.
According to CoinMarketCap, Bitcoin is trading at $87,436 at the time of publication, down 7.39% from its price on January 1st.
Anthony Pompliano told CNBC on Tuesday. sauce: CNBC TV
Bitcoin supporters such as BitMine chairman Tom Lee and BitMEX co-founder Arthur Hayes have predicted that the price of Bitcoin will reach $250,000 this year.
Mr Pompliano said reduced volatility meant holders might be “a little disappointed on the upside” because the upside was missing, but it also provided “some safety” on the downside, reducing the chance of huge drawdowns.
Some Bitcoin analysts expect it to tip $60,000 in 2026
But not all analysts are as confident as Pompliano.
Related: Brazilian live orchestra turns Bitcoin price fluctuations into music
Veteran trader Peter Brandt recently predicted that Bitcoin could fall to $60,000 by the third quarter of 2026.
Meanwhile, Fidelity’s director of global macroeconomic research, Julian Timmer, said 2026 could be a “rest year” for Bitcoin, with the price potentially falling to $65,000.
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