Wall Street Need Not Be Squeamish About Bitcoin’s Ups And Downs: Pomp

Bitcoiners aren’t new to 30% drawdowns, but it could be a first for many Wall Street investors, said crypto commentator Anthony Pompliano.

Institutional investors new to crypto may have been caught off guard by Bitcoin’s volatility, which has put downward pressure on its price, according to crypto entrepreneur and investor Anthony Pompliano.

During an interview on CNBC’s Squawk Box on Monday, Pompliano said Bitcoin (BTC) draws down roughly once every 1.5 years, and the recent slump isn’t likely to surprise Bitcoiners who have been in the game for a long time.

“Over the last decade, Bitcoin has drawn down 30% or more 21 different times,” said Pompliano.

“These new people are very, very fearful. We’re going into end of year. There’s things around bonuses people are trying to figure out, should I actually sell this asset that I thought I was really excited about? And I think that’s putting some downward pressure on the price,” he added.

Matthew Sigel, head of digital assets research at investment manager VanEck, said on Monday that Bitcoin's recent sell-off, which saw the token drop to lows of around $82,000, was “overwhelmingly a US-session phenomenon.”

He pointed to tightening US liquidity and widening credit spreads as key drivers, as fears over the large‑scale capital expenditures tied to artificial intelligence collided with a more fragile funding market.

Bitcoin’s price volatility has surged over the last two months and was creeping back up to about 60 as of Monday, which can spark large market moves in both directions, according to Bitwise market analyst Jeff Park.

Related: Anthony Pompliano to lead new Bitcoin-buying group raising $750M: FT

Pompliano told CNBC that people who have been involved in crypto for a while understand that volatility is a strong indicator.

Source: CoinTelegraph