Bitcoin Volatility Exposes Wall Street Nerves, Pompliano Warns 

Bitcoin recorded over 21 drops above 30%, showing long-term volatility patterns unfamiliar to many Wall Street investors.

Leverage peaked before October liquidations, then normalized as fear and greed index fell to rare extreme levels.

Despite altcoin losses, Bitcoin retained dominant institutional focus and steady accumulation by Anthony Pompliano.

Bitcoin faced intense selling pressure this week with Anthony Pompliano detailing repeated crash cycles and investor fear. Speaking on air, Pompliano said Bitcoin dropped over 22 percent within a month, showing stress among new holders from Wall Street unfamiliar with historic volatility patterns. He explained the decline followed leveraged liquidations and shifting sentiment near year-end, which tightened selling behavior and market caution.

Volatility History Frames Current Pullback

Anthony Pompliano, founder and CEO of Professional Capital Management, said Bitcoin recorded more than 21 dips exceeding 30 percent over the past decade. Notably, seven drawdowns crossed 50 percent, which he compared to recurring global financial crises during the same period

He stated Wall Street participants lack experience with such repeated volatility, unlike long-term Bitcoin holders. However, Pompliano said the current 35 to 37 percent decline from the all-time high reflects a typical reset cycle

He explained that past bear markets reached 70 to 80 percent losses, yet this phase shows reduced volatility. According to Matt Siegel of VanEck, Bitcoin volatility has fallen by nearly half over recent years.

Leverage Reduction and Market Fear Signals

Pompliano said leverage levels peaked before major liquidations on October 8 and 9, then normalized following forced sell-offs. Open interest declined and stabilized, which reduced immediate downside pressure. He referenced the Bitcoin fear and greed index falling to eight, while equities reached six.

Notably, he said such extreme fear levels rarely persist for long periods. He added that reduced leverage often follows sharp corrections, stabilizing market behavior. Therefore, he identified sideways price movement as the present condition before any upward recovery begins.

Bitcoin Dominance and Institutional Positioning

Pompliano emphasized Bitcoin’s dominance despite heavier losses in Ethereum and Solana during the same period. He explained Wall Street initially embraced Bitcoin, which reinforced its position as the primary store-of-value asset

He also noted increasing attention toward other digital assets but maintained Bitcoin retains the largest institutional allocation share. Pompliano said he continues accumulating Bitcoin throughout the year, maintaining steady holdings through volatility

He highlighted Bitcoin’s historical growth of 240 times over ten years, with an annual compound rate near 70 percent. However, he stated future growth expectations no longer match prior acceleration levels, reflecting more measured expansion.

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