Pompliano: The likelihood of a significant drop in Bitcoin in Q1 of next year is very low.

According to Mars Finance, on December 24th, cryptocurrency entrepreneur Anthony Pompliano believes that Bitcoin's failure to experience an exciting price surge at the end of this year may actually be a factor in avoiding a severe crash in the first quarter of next year. In an interview with CNBC, Pompliano pointed out that based on current volatility levels, the likelihood of a significant drop in Bitcoin is low. He stated, "Given the current volatility, it would be very surprising if Bitcoin still experienced a 70% or 80% drop, even with significantly compressed volatility." He believes that Bitcoin holders' short-term disappointment at failing to reach their year-end target of $250,000 has overshadowed its stronger long-term performance. "We must remember that Bitcoin rose 100% in two years and nearly 300% in three years. It has been compounding," Pompliano said. "It has always been a 'monster' in the financial markets." Pompliano stated that the decline in volatility has been largely ignored compared to the market's focus on Bitcoin's price drop since the beginning of the year. "We did not see the 'peak of the surge' that people expected at the end of the third quarter or the beginning of the fourth quarter, but similarly, we did not see the kind of plunge that people usually expect, which can be as high as 80%."