Summary
- Anthony Pompliano said he viewed the recent Bitcoin decline as a "healthy reset."
- He said market leverage has been largely unwound, and Bitcoin is expected to show gradual recovery after trading sideways.
- He said the recent decline was caused by a combination of long-term holder selling, regulatory uncertainty, and leverage liquidations.
Cryptocurrency investment firm Pomp Investments founder Anthony Pompliano recently described the Bitcoin (BTC) decline as a "healthy reset".
In an interview with CNBC on the 24th (local time), Pompliano emphasized that "Bitcoin has experienced 21 corrections of 30% or more over the past 10 years, and 7 of those saw declines exceeding 50%," stressing that this decline is not abnormal or an excessive correction.
He forecasted that "the 'extreme fear' phase of the Fear & Greed Index does not last long. Market leverage has been largely unwound, and Bitcoin will trade sideways for the next few weeks before showing a gradual recovery." He added, "Volatility is necessary for asset prices to continue rising."
Bitcoin recently fell below $100,000, leading the overall market decline, and analyses suggest that long-term holder selling, regulatory uncertainty, and leverage liquidations acted in combination.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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