In an interview with CNBC on Monday morning, Anthony Pompliano spoke about how Bitcoin’s current decline is in line with a bullish trend and how AI and Bitcoin will work together in the next decade.
Pompliano highlighted the decade-long bullish trend for AI and Bitcoin, pointing to their potential to create and store wealth.
Regarding his desire to buy more Bitcoin (BTC) at a cheaper price, Pompliano said, “I’m going to go to the office and I’m going to buy some more.”
Bitcoin falls 15%
When asked about Bitcoin’s current price slump, Pompliano remained optimistic about the digital asset, arguing that retail investors, traditional profit takers, and broader market trends are at play.
Pompliano said a 30% drop is expected in a bull market, so the current 15% drop is in line with reasonable expectations.
“I think it’s important to put this in context. Bitcoin is up 40% so far this year, and 100% in the past year,” Pompliano said. “In terms of volatility, this is pretty much what you’d expect.”
Pompliano also cited changing trading habits, profit taking, and the summer as reasons for Bitcoin’s price decline. Trading of the asset typically declines during the summer, when many people take profits.
“Whenever asset prices go up significantly, people start taking profits. We saw an explosive rally earlier this year and naturally people are starting to take some of those gains,” Pompliano said.
AI and Bitcoin
Bitcoin and artificial intelligence (AI) are emerging as forces working in tandem to change how wealth is created and stored. As Bitcoin solidifies its position as a trusted store of value and decentralized financial asset, AI is changing the way digital assets are managed, analyzed and secured, Pompliano said.
“We are entering an automated world where AI will create massive wealth and Bitcoin will protect that wealth,” Pompliano said.
Pompliano cited “huge tailwinds” supporting both AI and cryptocurrency development, saying AI productivity could boost global GDP. This is in line with other investors, including Eric Balchunas, senior ETF analyst at Binance, who predicts global ETF assets will triple to $35 trillion by 2035 from $13 trillion today.
ETF
When spot crypto ETFs were approved earlier this year, most of the increase in crypto investment that followed their announcement was from retail investors, indicating that a significant portion of the funds invested in spot ETFs came from individual traders rather than large traditional financial institutions.
“About 80% of the flows into ETFs are actually from retail investors,” Pompliano said. “What takes a lot of time within these organizations is that advisers have to go to retail investors and committees… that takes time.”
Spot crypto ETFs earlier this year led to a notable increase in crypto investment, primarily from retail investors rather than large traditional financial institutions.
