"Bitcoin hit by volatility shock from new Wall Street institutional investors... adding selling pressure"

Anthony Pompliano, a cryptocurrency investor and entrepreneur, pointed to a "volatility shock from newly entered institutional investors" as one of the reasons behind the Bitcoin (BTC) price decline.

On the 24th (local time), Pompliano said on CNBC's 'Squawk Box', "Bitcoin typically goes through major corrections on roughly a year-and-a-half cycle, and over the past 10 years there have been 21 instances where it fell more than 30%," adding, "Long-standing Bitcoin investors are familiar with the pattern, but new investors from Wall Street are surprised by this volatility."

He explained that institutional investors' bonus structures and portfolio adjustments ahead of year-end are also stimulating selling sentiment. Pompliano said, "The newcomers are very nervous," and "Ahead of year-end accounting, they begin to consider 'Should I sell this asset that looked interesting now?', and this creates additional downward pressure on the price."

Pompliano also stressed that volatility is a structural characteristic of Bitcoin and a long-term growth foundation. He said, "Volatility itself is not a negative signal. It would be more problematic if it were absent," and "Over the past 10 years, Bitcoin has risen 240-fold, with an average annual growth rate of 70%, but even if it maintains an average annual growth of only 20~35% going forward, it would consistently outperform the stock market."