Coin Edition -
- Bitcoin fell by 4.73% in 24 hours to $63,479, following an 8% weekend drop amid reports of Iranian attacks on Israel.
- Pompliano sees Bitcoin as a global alarm system.
- He emphasizes Bitcoin’s fixed policy and urges global financial adaptation.
Bitcoin dipped by 4.73% in the last 24 hours, trading at $63,479. This decline follows a significant 8% drop on Saturday night, coinciding with reports of Iranian attack drones and missiles targeting Israel. Over the past week, Bitcoin has fallen by 10.39%, Ethereum by 15.11%, and Solana by 23.70%.
Crypto investor Anthony Pompliano suggests that Bitcoin functions as a global alarm system, often leading other assets during financial turmoil. Pompliano’s analysis points to ongoing tensions in the Middle East and the current tax season contributing to Bitcoin’s recent decline. He asserts that these external pressures have fueled market volatility and prompted investor caution.
Posting on his X account, Pompliano told his 1.5 million followers that “Bitcoin is the global alarm system. It leads all assets in a crash and it leads all assets in moments of acceleration. Impossible not to pay attention now. The most free market asset we have.”
In an interview with Fox Business, Pompliano cited the market’s reaction in 2020 to offer insight into Bitcoin’s weekend drop. “In 2020, during COVID’s initial pandemic outbreak, all asset prices fell, and correlations went to one. So it didn’t matter if you were in stocks, bonds, Bitcoin, or anything else. Everything dropped because investors were panicking.”
According to the investor, Bitcoins’ behavior on the downside mirrors its trajectory on the upside once investors adapt to the volatility. Moreover, Pompliano emphasized the significance of tax-related selling pressure on Bitcoin’s price.
He pointed out that investors often liquidate Bitcoin and other assets to meet tax obligations, potentially contributing to temporary declines in its value. Furthermore, Pompliano highlighted that Bitcoin’s monetary policy is fixed compared to traditional fiat currencies.
While central banks can adjust monetary policy in response to market conditions, Bitcoin’s protocol remains unchanged. As such, he urged the global financial market to adapt to accommodate Bitcoin’s presence, exemplified by China’s improved stance on cryptocurrency regulation.
The post Bitcoin’s Role as ‘Global Alarm System’: Analysis of Recent Decline appeared first on Coin Edition.