Pompliano reminds investors: Bitcoin's value test is approaching. Can cooling inflation support holding positions?

BTC3,15%

February 14 News, Bitcoin entrepreneur Anthony Pompliano recently stated that as inflation data declines, Bitcoin investors face the challenge of reassessing their holding motivations. Pompliano pointed out on Fox Business that the value of Bitcoin lies in its limited supply, and when governments increase money issuance, Bitcoin prices tend to rise. He believes that, like gold, Bitcoin is a preferred long-term investment asset, but during periods of weakening inflation, investors may need to be more cautious about their reasons for holding.

According to data from the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) in January decreased from 2.7% in December to 2.4%. Moody’s chief economist Mark Zandi warned that reported inflation data might be lower than actual experience, implying that market demand for inflation-hedging assets like Bitcoin could be affected in the short term. Pompliano stated that the macroeconomic environment will continue to influence Bitcoin price volatility, referring to this as the “currency slingshot effect”—the short-term deflation masking the dollar’s devaluation trend, which may lead investors to focus more on Bitcoin’s value preservation function in the future.

Currently, market sentiment for Bitcoin has fallen to its lowest point since June 2022. The Crypto Fear & Greed Index shows an “extreme fear” score of 9. According to CoinMarketCap, Bitcoin’s current trading price is approximately $68,850, down nearly 29% over the past 30 days. Pompliano believes the Federal Reserve will continue to expand the money supply to combat inflation, which will further devalue the dollar, and as digital gold, Bitcoin’s value is expected to become more apparent in the future.

Pompliano’s view reminds investors that, despite obvious short-term market volatility, Bitcoin remains attractive in the context of the global macroeconomic environment and potential dollar devaluation. Monitoring CPI data and the dollar index closely will help assess the feasibility and potential returns of Bitcoin holding strategies.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

Why is Bitcoin Going Down? Bitcoin Everlight Launches Solution for Miners Facing Liquidation Challenges

Bitcoin experienced another significant decline as leverage unwinds across derivatives markets and miners’ balance sheets tighten. Price weakness below $90,000 has coincided with elevated liquidation volume and thinning liquidity, resulting in a crash toward $82,000. Within this environment, Bitc

CryptoPotato1m ago

Bitcoin Gets Its First Bond Rating as Moody's Grades New Hampshire Deal

In brief Moody's assigned a provisional Ba2 rating to up to $100 million in Bitcoin-backed revenue bonds issued through New Hampshire's Business Finance Authority. The bonds are backed solely by Bitcoin held in custody at BitGo, with no New Hampshire public funds at risk. The rating

Decrypt8m ago

Threshold Launches All-in-One Bitcoin Liquidity App

[PRESSS RELEASE – New York, United States, March 3rd, 2026] Threshold Network, the decentralized blockchain protocol behind tBTC, has introduced an update to its decentralized application featuring an all-in-one Unified Bitcoin App that enables users to route Bitcoin across major chains through a s

CryptoPotato10m ago

When to Buy Bitcoin Next? Analyst Outlines Exact Entry Levels

Bitcoin dumped hard in early February, plunging to a 15-month low of $60,000. This meant that it had shed over 50% of its value since early October when it peaked at over $126,000. Although it has recovered roughly 20% since that low and sits close to $72,000 now, there are still some analysts

CryptoPotato14m ago
Comment
0/400
No comments