Bitcoin’s decentralization has made Pompliano refer to the market as the last remaining free market. He describes the recent slump in the market as merely a small blip in the grand scheme of things. The king of cryptocurrencies is losing portions of its market share to altcoins like Ethereum and Solana.
A top Bitcoin crusader allays the fears of Bitcoin investors, urging them to have faith in the markets. He says that the asset is still the king of cryptocurrencies despite a rocky couple of weeks.
Pomp Remains As Bullish As Ever
Anthony Pompliano in a recent interview with CNBC’s Squawk Box has reaffirmed his belief in Bitcoin and the supremacy of the market. The hodl advocate urged investors to take advantage of the dip that accompanied Thanksgiving and Black Friday where the asset fell 20% from its all-time high of nearly $69K.
When questioned that the dip in prices casts doubts over the asset’s ability to be a hedge against inflation, Pomp responded in favor of BTC and pointed out that the historical antecedent paints a different picture. He noted that BTC has suffered from two major “drawdowns” in 2021 with the first being the 50% decline in May, a 30% decline over the summer but the asset has comfortably traded over $50K.
BTCUSD Chart by TradingView
“If you look at the historical volatility, a 12% drawdown in Bitcoin is equivalent to a 1.7% drawdown on the S&P 500 so a 20% drawdown is equivalent to a 3 and a half percent in the S&P,” said Pompliano. He goes on to refer to the Bitcoin market as the last true market in the world given its decentralized nature.
“We’re watching a free market that trades 24/7/365 by millions of people globally and it serves as a price indicator for how people are feeling about certain financial assets or markets.”
Bitcoin, the crypto, and global financial markets took a big hit following reports of a new Covid variant as investors panicked in what could best be described as a “knee jerk reaction.”
Still The King
Pomp noted that 80%-90% of Bitcoin buyers are in profit and he and millions of persons will not be selling his Bitcoin as demand continues to increase. He predicts a further rally in the face of Invesco’s proposed ETP with spot Bitcoin and other positives.
“I think that Bitcoin by far is still the king. When it moves everything moves with it,” Pomp replied to the question of Ethereum’s and Solana’s growth in recent times. He noted that while this might not be the case every time, there is a pattern at play.
Bitcoin still controls the lion’s share of the cryptocurrency markets with over 41% control. Ethereum comes second place with over 20.91%. Binance Coin and Solana have 3.94% and 2.46% respectively.