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Bitcoin's Routine Chaos: Why 35% Crashes Are Just Part of the Game

MarketDash Editorial Team
13 days ago
Veteran investor Anthony Pompliano says Bitcoin holders experience the equivalent of a global financial crisis every 18 months, and the current 35% drawdown is just another typical day at the crypto office.

If you're a Bitcoin (BTC) holder feeling queasy about the recent selloff, Anthony Pompliano has a message for you: welcome to the club. This is what we do here.

In a recent CNBC interview, Pompliano laid out the math that makes crypto veterans shrug while traditional investors panic. Over the past decade, Bitcoin has suffered through 21 drawdowns exceeding 30%, and seven of those plunged more than 50%. For anyone who's been around the block, this isn't a crisis. It's Tuesday.

The TradFi Reality Check

What makes this correction feel different is the audience. Traditional finance investors have piled into Bitcoin, and they're discovering that crypto volatility hits differently than watching the S&P 500 drift lower by a few percentage points. The timing doesn't help either—year-end brings bonus season, redemptions, and the usual portfolio reshuffling, all of which pile onto sell pressure.

The good news, according to Pompliano? The leverage reset has already happened. That means the risk of cascading liquidations—where forced selling triggers more forced selling—is largely behind us. He's continuing to accumulate and expects Bitcoin to consolidate before grinding steadily higher.

Why This Looks Like a Bottom

Pompliano argues the current 35% drawdown aligns perfectly with Bitcoin's historical patterns and looks more like a bottoming phase than the beginning of an 80% bear-market wipeout. Several indicators back that up:

  • Volatility has dropped by half compared to previous cycles
  • Fear gauges are screaming capitulation—Bitcoin sentiment sits at 8, equities at 6
  • October's liquidation wave already flushed out the excess leverage

Looking ahead, Pompliano believes Bitcoin can still post 20-35% annual returns over the next decade. That would handily outperform equities, even if the asset's previous 240x rally over ten years never repeats.

Altcoins and Institutional Expansion

On the altcoin front, Pompliano notes that Ethereum (ETH) and Solana (SOL) haven't led this cycle the way they did during past euphoric rallies. Wall Street started with Bitcoin, but he expects institutional money to gradually spread across the crypto landscape. Still, Bitcoin remains the dominant store-of-value play.

The bottom line? If you're in crypto for the long haul, getting comfortable with crisis-level volatility every 18 months isn't optional. It's the price of admission.

Back to News

Bitcoin's Routine Chaos: Why 35% Crashes Are Just Part of the Game

MarketDash Editorial Team
13 days ago
Veteran investor Anthony Pompliano says Bitcoin holders experience the equivalent of a global financial crisis every 18 months, and the current 35% drawdown is just another typical day at the crypto office.

If you're a Bitcoin (BTC) holder feeling queasy about the recent selloff, Anthony Pompliano has a message for you: welcome to the club. This is what we do here.

In a recent CNBC interview, Pompliano laid out the math that makes crypto veterans shrug while traditional investors panic. Over the past decade, Bitcoin has suffered through 21 drawdowns exceeding 30%, and seven of those plunged more than 50%. For anyone who's been around the block, this isn't a crisis. It's Tuesday.

The TradFi Reality Check

What makes this correction feel different is the audience. Traditional finance investors have piled into Bitcoin, and they're discovering that crypto volatility hits differently than watching the S&P 500 drift lower by a few percentage points. The timing doesn't help either—year-end brings bonus season, redemptions, and the usual portfolio reshuffling, all of which pile onto sell pressure.

The good news, according to Pompliano? The leverage reset has already happened. That means the risk of cascading liquidations—where forced selling triggers more forced selling—is largely behind us. He's continuing to accumulate and expects Bitcoin to consolidate before grinding steadily higher.

Why This Looks Like a Bottom

Pompliano argues the current 35% drawdown aligns perfectly with Bitcoin's historical patterns and looks more like a bottoming phase than the beginning of an 80% bear-market wipeout. Several indicators back that up:

  • Volatility has dropped by half compared to previous cycles
  • Fear gauges are screaming capitulation—Bitcoin sentiment sits at 8, equities at 6
  • October's liquidation wave already flushed out the excess leverage

Looking ahead, Pompliano believes Bitcoin can still post 20-35% annual returns over the next decade. That would handily outperform equities, even if the asset's previous 240x rally over ten years never repeats.

Altcoins and Institutional Expansion

On the altcoin front, Pompliano notes that Ethereum (ETH) and Solana (SOL) haven't led this cycle the way they did during past euphoric rallies. Wall Street started with Bitcoin, but he expects institutional money to gradually spread across the crypto landscape. Still, Bitcoin remains the dominant store-of-value play.

The bottom line? If you're in crypto for the long haul, getting comfortable with crisis-level volatility every 18 months isn't optional. It's the price of admission.