Anthony Pompliano: Bitcoin’s decline does not indicate a bearish trend., 2026/02/04 16:41:57

Investor and co-founder of Morgan Creek Digital, Anthony Pompliano, stated that the 40% decline in Bitcoin from its all-time high does not signify the onset of a bear market, as the asset’s structure and volatility have evolved.

The extent of Bitcoin’s correction is markedly different from the declines seen in previous years, when the market would lose up to 80% of its value, the businessman noted. He mentioned that the leading cryptocurrency has matured significantly as a financial instrument, with its volatility decreasing by approximately half in recent years.

Given this level of volatility, the current price drop may be more indicative of a bottom formation with a subsequent rebound rather than a prolonged bear phase. The involvement of institutional investors and the launch of spot Bitcoin ETFs contribute to more measured and controlled price movements, according to the entrepreneur.

At present, the market is increasingly concerned about deflationary scenarios rather than accelerating inflation, which is reducing short-term demand for Bitcoin as a hedging tool, Pompliano remarked.

Regarding the divergence in price dynamics between Bitcoin and gold, the record rise in precious metal prices is attributed to active purchases by central banks using gold as a “tool to move away from fiat currencies,” the businessman believes. Bitcoin, however, has yet to be recognized as a reserve asset by financial regulators, which limits BTC‘s participation in this trend, Pompliano explained.

Earlier, analysts from the on-chain platform Santiment indicated that the rise in panic among traders and investors in the crypto market is actually a bullish signal, suggesting an impending reversal.