Anthony Pompliano, a renowned Bitcoin (BTC/USD) proponent, believes the flagship cryptocurrency is still the market’s leader. He shared his opinions during an interview earlier today, saying BTC is the king of crypto by far. According to him, the coin still dictates the direction that the broader crypto market takes.
In the interview, Pompliano acknowledged that BTC is highly volatile as compared to the traditional stock market. He noted that historical volatility data shows a 12% drop in BTC equates to a 1.7% plunge in global stocks like the S&P 500. As such, a 20-24% fall in BTC is equivalent to a 3.5% drop in the S&P 500.
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He further pointed out that BTC has had six drawdowns that exceeded 20% in 2021 alone, including the latest plummet from its November 10 ATH of $68,789.63 (£51,731.25).
However, Pompliano believes it is vital to understand that BTC is the only free and honest market. Commenting on BTC’s slump in the past week, he said the leading crypto by capitalization sold off before the equity market and others.
Explaining why the BTC was the first to experience a rout, Pompliano said it runs for 24 hours every day, and millions of people across the globe have access to its market. As such, it serves as a price indicator of how people are feeling about certain financial assets or markets.
BTC’s demand is on the rise
According to Pompliano, it is hard to tell BTC’s floor price because the market has an error margin on the downside. However, he believes checking how many people have profited after buying BTC is a key metric. He noted that around 90% of the people that bought BTC have already turned profits.
Touting BTC, he said it is a finite asset that the world is still waking up to as more people understand that governments have undisciplined monetary and fiscal policies. He added that this understanding helps people HODL their BTC, thus increasing the cryptocurrency’s demand.
Pompliano also mentioned Invesco’s launch of an exchange-traded product (ETF) based on BTC’s spot market, saying such products would help push BTC’s demand up.
This news comes as BTC continues trading bullishly in the day after recovering from its Friday low of $53,569.76 (£40,290.62). At the time of writing, the coin is up 6.40% over the past 24 hours to change hands at $ $58,560.17 (£44,057.74).
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