Famous investor and Professional Capital Management CEO Anthony Pompliano evaluated the recent price movements of Bitcoin (BTC).
According to Pompliano, the recent declines in Bitcoin are a sign of the asset’s maturation process.
Pompliano noted that Bitcoin has typically experienced corrections of 30% in past bull markets, while the recent decline has remained in the 10-15% range. He explained that this is related to the entry of institutional investors into the market and the decrease in volatility.
Bitcoin is now a much larger market. Institutional investors, ETFs, and public companies are involved. This is leading to a reduction in excessive volatility. We are now unlikely to see a rapid rally to $400,000-$500,000 or a sharp decline of 85-90%.
Pompliano stated that Bitcoin has transitioned from a “consensus” investment to a “consensus” investment, arguing that this process inherently results in lower volatility. He also stated that he believes Bitcoin will reach $1 million in the long term, but that this is unlikely to happen in this cycle.
According to Pompliano, Bitcoin is “oversold” at its current levels, with a rebound expected in the September-October period. This is due to expectations of a Fed rate cut, corporate buying, and increased market activity after the holiday season.
Referring to the interest in ETPs and ETFs, Pompliano said that some investors have converted their BTC into ETFs for security reasons, but he does not expect this to become widespread in the general community:
“Bitcoin is still king. The rhetoric of ‘Blockchain but not Bitcoin’ is no longer valid. Capital is shifting to other areas, which further reduces volatility.”
*This is not investment advice.