Bitcoin Crashes 30% 21 Times in a Decade and That’s Totally Normal, Says Pompliano

By Emir Abyazov

Wall Street investors shouldn’t be alarmed by Bitcoin’s sharp price swings, says Anthony Pompliano, a prominent crypto influencer and investor who launched the ProCap Financial Bitcoin treasury company earlier this year. According to Pompliano, newcomers simply aren’t used to the cryptocurrency’s natural volatility.

In an interview with CNBC, Pompliano explained that Bitcoin typically declines by around 30% every eighteen months, and the latest correction is nothing unusual for long-time market participants.

According to Pompliano, new participants are experiencing heightened anxiety. As year-end approaches, many think about bonuses and whether to exit positions that once looked attractive, which is pressure that contributes to downward price momentum.

Selloff driven mostly by the U.S. trading hours

Matthew Sigel, head of digital asset research at VanEck, said the most recent selloff was “overwhelmingly a US-session phenomenon,” with Bitcoin briefly dropping toward $82,000.

Bitcoin’s selloff was overwhelmingly a US-session phenomenon.

The driver: tightening US liquidity and widening credit spreads as AI-capex fears collided with a more fragile funding market.

h/t @Patrick_Bush_VE pic.twitter.com/ow2iJT5Y9x

— matthew sigel, recovering CFA (@matthew_sigel) November 24, 2025

He pointed to tightened U.S. liquidity conditions and widening credit spreads as key drivers. Growing concerns over large-scale investments in artificial intelligence are colliding with a more fragile funding environment.

On the other hand, analysts at Swissblock say Bitcoin is likely forming a bottom, which would set the stage for a price recovery.

Why the volatility isn’t a red flag

For many traditional investors, a 30% drop signals alarm bells. But for the crypto crowd, Pompliano argues, it’s baked into the asset’s DNA. New entrants, especially those from Wall Street, are less accustomed to the scale and frequency of such swings, which is generating much of the concern.

On top of that:

• Institutional involvement, ETFs and larger market scale are evolving Bitcoin’s structure, but the rough spots will still arrive.
• Market mechanics like liquidity tightening or credit-spread widening (especially in the U.S.) amplify moves.
• Volatility isn’t a bug,it’s a feature. As Pompliano puts it: if Bitcoin’s volatility were near zero, that might be the real reason to worry.

Volatility as a long-term growth engine

Bitcoin’s volatility has surged over the past two months, reaching a peak this week. Such an environment can trigger strong moves in either direction, notes Bitwise analyst Jeff Park.

Pompliano argues that such volatility isn’t a threat but a feature.

Over the past decade, Bitcoin has increased by roughly 240 times, delivering about 70% annualized returns. Pompliano doesn’t expect that explosive rate to continue but believes that even 20–35% annual returns would allow Bitcoin to outperform stocks.

Statistics back Pompliano’s view: experienced traders see current fluctuations as routine, while institutional investors are still adapting to the crypto market’s unique dynamics.

Source:: Bitcoin Crashes 30% 21 Times in a Decade and That's Totally Normal, Says Pompliano