Pomp Says ‘This Time Is Different’ as Prices Bounce Back

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By Aaron Feuerstein March 21, 2024 In Bitcoin, Cryptocurrency, Memecoins

Anthony Pompliano views recent Bitcoin dip as minor, emphasising its significant long-term growth over the S&P.
He highlights Bitcoin’s inherent volatility, tied to its status as a top-performing asset.
Pomp compares investing in meme coins to gambling, noting their appeal and high-risk nature.

Anthony Pompliano made some comments on the recent market pullback, speaking to Bloomberg Crypto, he said it was minor in nature compared to Bitcoin’s historical volatility. He made the point that during previous bull markets, Bitcoin has seen multiple 30% drawdowns, illustrating the current 13 to 15% pullback as relatively small.

For context, this is a pullback for Ants compared to what Bitcoin historically has been through.

Anthony Pompliano

Pomp stressed Bitcoin’s robust performance over the long term, noting its 1500% increase over the last five years, compared to the S&P’s less than double increase, and a 60% compound annual growth rate over the last decade versus the S&P’s 11%. According to him, volatility is a necessary part of achieving significant upside gains in the market.

If you want volatility on the upside, you’re going to need some volatility on the downside to get there.

Anthony Pompliano

Buckle Up For More Volatility

Asked about further volatility, the entrepreneur and investor reflected on the unpredictability introduced by Wall Street’s involvement and the approval of ETFs, noting the irony of a price crash following such endorsements.

Despite breaking historical precedents and entering uncharted territory, Bitcoin has repeatedly set new all-time highs, sometimes doubling in price within 18 days, followed by significant drawdowns.

We had never seen Bitcoin hit an all-time high before the halving […] those rules got broken.

Anthony Pompliano

This pattern underscores Bitcoin’s status as a highly volatile asset, which, while being the best performing, carries inherent risks and unpredictability. Pomp added that the unique and volatile nature of Bitcoin suggests that its historical performance and recent behaviour mark it as an asset unlike any other.

And so, I think we’re in uncharted territory here and people have to understand this is like a [high] voltage asset. It has been the best performing asset. But it is very, very volatile all the way up.

Anthony Pompliano

Pomp Muses About Memecoins

What are the prevailing narratives in crypto? According to Pomp:

So, I think right now the market story is Bitcoin and memecoins. And frankly, they’re both right.

Anthony Pompliano

Pomp said the allure of memecoins is as a form of gambling, tapping into the human nature of risk-taking, much like government-sanctioned lotteries. He used the example of someone turning a few dollars into tens of thousands overnight to illustrate the appeal of memecoins.

So, if I say to someone, hey, there’s somebody over there who put $500 in the thing, went to sleep, woke up, and it’s now worth $25,000. There’s a lot of people in America who say, well, I’m interested in that.

Anthony Pompliano

Pomp compared putting money into memecoins to playing a video game for adults, where the distinction between the game and real life is clear. While he is sceptical about the intrinsic value of meme coins, he recognised that people are making real money from these investments—comparing it to gambling in the stock market with zero-day options.

I would argue it’s no different than what we see in the stock market. Many times, people are gambling on zero-day options. If I buy a meme coin or a zero-day option—which one has better odds? That’s pretty hard to compete.

Anthony Pompliano

Author

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.