Bitcoin News Today: Bitcoin Plunges 36%—Is This a Fresh Start or the Beginning of a Steeper Decline?

Bitcoin’s recent 36% decline has reignited discussions about the digital asset’s future, but Anthony Pompliano, founder of Professional Capital Management, remains undeterred. Speaking with CNBC and other media, Pompliano described the pullback as a “healthy correction” rather than the start of a lengthy downturn,

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Pompliano pointed out that

has seen 21 separate drops of at least 30% in the last ten years, . He believes this volatility is part of Bitcoin’s evolution, , which he called “extremely rare” and a sign of widespread capitulation. “You can’t stay at that level for long,” he remarked, implying that the current downturn could soon stabilize and eventually recover.

The analyst also noted that lower leverage in the market suggests a reduced risk of further forced liquidations.

, have since returned to more typical levels, he observed. This trend fits with broader data showing Bitcoin’s volatility has dropped by half in recent years, .

Although individual investors have been pulling money from Bitcoin ETFs, institutional players are still buying.

, raising its total to 7,474.37 BTC worth $688 million. , purchased 8,178 BTC at an average price of $102,200. Pompliano, who has increased his Bitcoin allocation each year, , even as other cryptocurrencies like and lag behind.

The ETF market, however, remains unsettled.

, with BlackRock’s IBIT—the largest fund—seeing $2.2 billion in outflows. , with no notable new investments. , where redemptions intensify price drops, .

Beyond market trends, broader economic forces are at play.

and the lack of October economic reports due to a government shutdown have increased risk aversion. also stumbled, with the Nasdaq-100 dropping 4% in November. While Pompliano acknowledged these challenges, he remained upbeat, —lower than its historical 70% compound annual growth, but still ahead of stocks.

From a technical perspective, Bitcoin is approaching key support at $89,400 and $82,400,

. as part of a “healthy consolidation” typical of Bitcoin’s 18-month correction cycles. a “fragile market structure,” with thin liquidity and waning regulatory momentum contributing to the decline.

Pompliano’s optimistic outlook highlights a key point: Bitcoin’s volatility, though intimidating for traditional investors, is central to its appeal. “Bitcoin will remain unrivaled and continue to lead the crypto market,” he said,

. As the market contends with economic headwinds and technical challenges, the next few weeks will reveal whether this correction sets the stage for a new rally or signals deeper troubles ahead.

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