Anthony Pompliano says BTC volatility fell from 80 to 40, calling this the mildest major Bitcoin drawdown on record.
Bitcoin’s recent price swings have sparked debate, yet Anthony Pompliano argues the data tells a different story.
He stated that the current drawdown is the least severe major pullback in Bitcoin’s history. While short-term moves appear sharp, he said broader volatility trends show structural change.
Bitcoin Drawdown Less Severe Than Prior Cycles
Pompliano said the latest correction feels intense but remains moderate by historical standards.
He noted that from peak to current levels, the decline is smaller than past bear markets. Previous cycles saw deeper and longer drawdowns.
Bitcoin has dropped around 10% in single-day sessions during this period. However, Pompliano pointed to long-term data to support his claim.
He stated that “this is the least severe major pullback Bitcoin has ever had.”
He compared current price action with earlier market cycles. Past corrections often exceeded 70% from all-time highs.
The present drawdown remains materially smaller in percentage terms.
Volatility Compression Signals Structural Shift
Pompliano emphasized that Bitcoin’s volatility profile has changed. He said the asset once traded as an 80-vol instrument. According to him, it now behaves closer to a 40-vol asset.
This reduction suggests tighter price ranges over time. Lower volatility may reflect broader participation and deeper liquidity. Market structure has evolved as trading volumes increased.
He attributed part of this shift to the introduction of exchange-traded funds and new derivatives.
These instruments allow both long and short positioning. As a result, two-way flow has become more common in daily trading.
Related Reading: Anthony Pompliano: Bitcoin Volatility Has Not Derailed Long-Term Growth
ETFs, Trading Activity and Macro Forces
Pompliano said Bitcoin is no longer held only as a long-term store of value. Instead, it is actively traded by institutions and retail participants.
This trading activity contributes to more consistent price discovery.
He stated that ETFs and regulated products have changed market access. Investors can now gain exposure without direct custody.
This has broadened the participant base and diversified trading behavior.
Beyond market structure, Pompliano also referenced macroeconomic trends. He said artificial intelligence may create deflationary pressure in the U.S. economy.
According to him, this force could counterbalance expansionary monetary policy.
Pompliano noted that short-term price swings may feel unstable. However, he argued that the broader market appears more mature.
He maintained that volatility compression reflects long-term development within Bitcoin markets.
Source: https://www.livebitcoinnews.com/anthony-pompliano-says-btc-volatility-has-structurally-shifted/
