Bitcoin’s Calm Year-End Price Signals Stability for Q1, Says Pomp

Bitcoin’s calm year-end price signals stability for Q1, says Pomp

Bitcoin entrepreneur Anthony Pompliano suggests that the absence of a dramatic year-end price rally may help avert a substantial crash in the first quarter of next year.

In a recent interview on CNBC, Pompliano remarked, “Considering the current volatility levels, it would be quite surprising if Bitcoin's decreased volatility still led to a drawdown of 70% or 80%.”

Key Insights from Pompliano’s Remarks

Bitcoin's volatility has decreased significantly, contrasting with the asset's price drop since the beginning of the year.
The anticipated price surge at the end of Q3 or the beginning of Q4 has not occurred.
The current trading price for Bitcoin is approximately $87,436, showing a 7.39% decline since January 1st.
While Bitcoin enthusiasts had high expectations for price targets up to $250,000 this year, Pompliano believes that reduced volatility could offer some protection against significant downturns.

Cryptocurrencies, Bitcoin Price Anthony Pompliano spoke to CNBC on Tuesday. Source: CNBC Television

Stability Amid Disappointment

Pompliano commented that the easing of Bitcoin's volatility has largely gone unnoticed by many holders. “We missed the expected explosive rise at the close of Q3 or the start of Q4, yet we also haven’t experienced the massive 80% downturn that typically comes with such scenarios,” he explained.

As of now, Bitcoin is trading at $87,436, reflecting a 7.39% drop since the beginning of the year, as reported by CoinMarketCap.

Divergent Views in the Analyst Community

Among Bitcoin supporters, figures like Tom Lee from BitMine and Arthur Hayes from BitMEX had predicted that Bitcoin would soar to around $250,000 this year. In contrast, Pompliano pointed out that the recent volatility compression might lead to some disappointment for holders hoping for significant gains. However, he added that it also provides a certain level of security against steep losses.

Not all analysts share Pompliano's optimism. Veteran trader Peter Brandt has forecasted that Bitcoin might decline to as low as $60,000 by the third quarter of 2026. Similarly, Jurrien Timmer, Fidelity’s director of global macroeconomic research, indicated that 2026 might be a slow year for Bitcoin, with potential prices dropping to $65,000.

This mix of perspectives highlights the uncertainty surrounding Bitcoin's future in the volatile cryptocurrency market.

In summary, Pompliano's insights suggest that while 2023 has been a year of muted excitement for Bitcoin, the reduction in volatility could help protect against possible crashes in the near future. However, varied opinions among analysts signal that the road ahead may still hold many surprises.