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- Pompliano explains that the recent decline in Bitcoin is normal, highlighting profit-taking trends and seasonality.
- He predicts a bullish future for Bitcoin combined with the power of artificial intelligence.
Usually, altcoins follow Bitcoin [BTC] But at the time of writing, the entire cryptocurrency market was in an uptrend while Bitcoin was down 2.16% and was trading at $61.3K.
The impact of Mt.Gox payment plans on BTC
The decline was notable compared to June 6, when the value of Bitcoin reached $71.9 thousand. Many attributed this decline to the cessation of the Bitcoin exchange Mt.Gox Payment plan.
but, Alex ThorneThe head of corporate research at Galaxy Digital noted that the payment plan “will cause less selling pressure for Bitcoin than the market expects.”
Pompliano BTC Bullish Forecast
Amidst this news, Pomp host Anthony Pompliano spoke out recently interview With CNBC Squawk Box said,
“Bitcoin is up 40% year-to-date to 100% in the past year, so in terms of volatility, this is very predictable.”
Explaining the reasons behind this, Pompliano elaborated Recent market behavior, noting that in previous bull markets, there have been multiple drawdowns of 3% or more. He stated that we are now down 15% and exclaimed,
“This is the right kind of bandwidth you would expect.”
He stressed here that when an asset rises significantly, profit-taking is inevitable. There was a huge rally at the beginning of the year, followed by normal profit taking.
Pompliano also mentioned that many traders engage in fundamental trading, where they buy in the spot market and short in futures, dampening price movements and contributing to selling pressure.
In addition, he also talked about the seasonal trend as he pointed out that in the summer there are many investors who often say:
“Invest in May and then leave.”
Expanding on the topic, he also noted that this pattern is typical, with the fourth quarter often being a big quarter, while “the second and third quarters tend to move kind of sideways.”
Can Bitcoin and AI coexist?
Interestingly, Pompliano also highlighted artificial intelligence (AI) as a key driving force. He noted that the focus has shifted from Bitcoin and the general cryptocurrency ecosystem to artificial intelligence.
Pompliano believes that this shift is not harmful, but rather can be considered a common ground for the coexistence of the two technologies. He confirmed,
“AI will create massive amounts of wealth and Bitcoin will protect that wealth.”
Similar sentiments were echoed Alexis Ohanianfounder of Seven Seven Six, who said,
“It is my theory that the era of artificial intelligence and the rise of blockchain technology are about to collide and reinforce each other.”
Thus, even if Bitcoin’s current price action has investors worried, the future, coupled with the power of artificial intelligence, could have a significant and mostly bullish impact on Bitcoin. As Pompliano said,
“When a trend has been going on for decades, don’t get overly excited or fearful based on daily price movements.”
