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Tuesday Nov 25 2025 02:10
2 min
New institutional investors venturing into the crypto space may have been caught off guard by Bitcoin's inherent volatility, leading to downward pressure on its price, according to crypto entrepreneur and investor Anthony Pompliano.
In a recent interview on CNBC’s Squawk Box, Pompliano explained that Bitcoin (BTC) typically experiences a significant drawdown approximately every 1.5 years. He suggested that seasoned Bitcoiners are unlikely to be surprised by the recent market slump. “Over the past decade, Bitcoin has seen corrections of 30% or more on 21 separate occasions,” Pompliano stated.
“Therefore, long-term Bitcoin holders are accustomed to this level of volatility. However, those transitioning from traditional Wall Street finance are less familiar with such fluctuations.” He added that these new entrants are experiencing considerable apprehension as the year-end approaches. Questions around bonuses and the advisability of selling an asset they were initially enthusiastic about are contributing to the downward price pressure, Pompliano believes.
Matthew Sigel, Head of Digital Assets Research at investment manager VanEck, noted that the recent Bitcoin sell-off, which drove the price down to around $82,000, was predominantly a US-session phenomenon.
Sigel attributed this to tightening US liquidity and widening credit spreads. He suggested that concerns over large-scale capital expenditures related to artificial intelligence, coupled with a more fragile funding market, amplified the sell-off.
Bitcoin’s price volatility has increased over the past couple of months, reaching approximately 60 on Monday. According to Bitwise market analyst Jeff Park, this level of volatility can trigger substantial market movements in either direction.
Pompliano emphasized to CNBC that those familiar with crypto understand volatility is a powerful indicator. “It is not inherently negative. I would be concerned if Bitcoin’s volatility were essentially zero. Volatility is necessary for the asset to appreciate.”
“Bitcoin has increased 240-fold over the last decade, representing a compound annual growth rate of roughly 70%. We are unlikely to sustain that level of growth moving forward,” he conceded.
“However, if we achieve a compound annual growth rate of 20, 25, 30, or 35% over the next decade, Bitcoin will outperform equities. This is why many Bitcoiners are enthusiastic about including this asset in their portfolios,” Pompliano concluded.
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