While Bitcoin goes through a turbulent period with a 28% drop in one month, Anthony Pompliano, entrepreneur and advocate for the crypto queen, reaffirms his unwavering confidence. Why does Pompliano see in this volatility a historic opportunity for long-term investors?
Anthony Pompliano continues to see Bitcoin as an asset of the future, despite current challenges. For him, the fundamental value of the crypto queen rests on its scarcity: only 21 million bitcoins will ever exist! This characteristic makes it an ideal hedge against inflation and fiat currency devaluation, a point he regularly emphasizes.
In an interview with Fox Business, Pompliano explained that Bitcoin could experience a temporary devaluation, which he calls a “monetary slingshot”. According to him, this phase will precede a spectacular rise, driven by central banks’ expansionary monetary policies. For Pompliano, the current volatility is just another episode in BTC’s long and promising history.
Bitcoin is currently facing headwinds, with a 28% drop over 30 days and an extreme fear index in the markets. Yet, several factors argue in favor of a long-term rebound. Recent outflows from Bitcoin ETFs, although concerning, do not undermine the progressive institutional adoption of the crypto queen. For investors, the key is to focus on the long-term horizon and diversify their portfolios to mitigate short-term volatility risks.
Short positions on bitcoin have reached a record level, according to the latest market data. This phenomenon reflects increased distrust among short-term traders betting on a continued decline. However, in BTC history, such short position levels have often preceded spectacular trend reversals, known as “short squeeze”.
Historically, when short positions grow too large, even a slight price increase can trigger a panic among short sellers, amplifying the rebound. Long-term investors, like those Pompliano aims to convince, could then be well rewarded. The combination of record short positions and solid fundamentals thus strengthens the idea that bitcoin remains an asset to watch closely.
Bitcoin is going through a period of doubt, but Anthony Pompliano reminds us that its value lies in its scarcity and long-term potential. Between record short positions and expansionary monetary policies, the coming months will be decisive. And you, would you be ready to bet on BTC despite the current volatility?
