Pompliano States That Easing Inflation Challenges Bitcoin Investors’ Confidence

Bitcoin holders might be entering a new stage of the market cycle as inflation subsides, according to entrepreneur and investor Anthony Pompliano, who asserts that the fundamental premise of the asset is currently being scrutinized.

Key Takeaways:

• Pompliano indicates that declining inflation is challenging the long-term belief of Bitcoin investors.
• Bitcoin’s scarcity argument relies more on the expansion of the money supply than on short-term changes in the Consumer Price Index.
• Weak market sentiment and macroeconomic uncertainty could exert downward pressure on prices prior to a possible recovery.

In a discussion with Fox Business on Thursday, Pompliano contended that numerous investors initially gravitated towards Bitcoin during a time of rising prices and aggressive monetary policy.

With inflation decelerating, he stated that the crucial question is whether market participants still have faith in Bitcoin’s long-term role.

Pompliano: Bitcoin’s Argument Challenged Without Elevated Inflation

“I believe the challenge for Bitcoin investors is whether you can hold an asset when there is not high inflation confronting you daily,” he remarked.

“Can you maintain your belief in Bitcoin’s value proposition, which is that it is a finite-supply asset? If money is printed, Bitcoin will rise.”

Government statistics indicate a slight cooling in inflation. The Consumer Price Index decreased to 2.4% in January from 2.7% the previous month, as reported by the US Bureau of Labor Statistics.

Nonetheless, Moody’s Analytics chief economist Mark Zandi recently informed CNBC that the improvement appears more pronounced in the statistics than in the actual costs experienced by consumers.

Bitcoin has been long regarded as a safeguard against currency devaluation due to its capped supply of 21 million coins.

When central banks increase liquidity and diminish purchasing power, investors often gravitate towards scarce assets, including Bitcoin and gold, both of which Pompliano characterized as reliable long-term stores of value.

However, market sentiment has weakened. The Crypto Fear & Greed Index recently fell to an “Extreme Fear” level of 9, a figure not observed since June 2022.

At the time of publication, Bitcoin was trading around $68,850, reflecting a decline of approximately 28% over the past month, according to CoinMarketCap.

I joined @cvpayne yesterday from the floor of Bitcoin Investor Week to discuss bitcoin, inflation, deflation, and the strength of the US economy. pic.twitter.com/eTYeeCfGul

— Anthony Pompliano (@APompliano) February 12, 2026

Pompliano anticipates that macroeconomic conditions will create volatility before any sustained recovery occurs.

He foresees deflationary pressures in the near term, followed by policy measures such as interest rate reductions and renewed liquidity injections.

“We’re going to experience deflationary-type forces in the short term; people will demand money printing and lower interest rates,” he stated.

He described this situation as a “monetary slingshot,” where currency devaluation takes place while declining prices temporarily mask its effects.

Over time, he argued, additional money creation would weaken the U.S. dollar and bolster scarce assets.

Bitcoin Declines as US Jobs Revision Disrupts Market Confidence

Bitcoin’s recent drop followed a significant shift in economic expectations after US authorities revised last year’s employment figures downward by nearly 900,000 jobs.

While January payrolls indicated a modest increase of 130,000 positions, the substantial adjustment undermined confidence in previous reports and unsettled financial markets.

Investors reacted more to the reliability of the data rather than the weak headline figure, as uncertainty tends to heavily impact risk assets.

The alteration quickly reverberated across markets. US Treasury yields rose, with the 10-year yield moving from approximately 4.15% to 4.20%, while expectations for a March interest rate cut plummeted from 22% to 9%.

Derivatives activity also surged, with large traders increasing hedging positions against further declines.

Analysts noted that preliminary labor estimates, including statistical models employed during economic transitions, may have overstated job creation in earlier readings.

For Bitcoin, the bond market remains a critical indicator. Rising yields typically tighten liquidity conditions, making it more challenging for speculative assets to rebound.

Although some traders believe prices may be approaching a bottom, current market behavior indicates caution.

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