Anthony Pompliano, CEO of Professional Capital Management, has expressed a cautiously optimistic view on the current state of Bitcoin (BTC), suggesting that selling pressure may be diminishing. His insights were derived from on-chain data analyzed by Binance Research, presented in a recent video on social media platform X.
Pompliano highlighted four critical data points to support his perspective. Firstly, he noted that nearly 60% of Bitcoin has remained stationary for over a year, a notable increase from just 27% in 2012. This trend signals a growing “illiquidity” in Bitcoin, which he interprets as a sign of “sustained long-term holder conviction.”
Secondly, he discussed the short-to-long-term realized value ratio, which is currently deep in a “historical bottom zone.” A low ratio suggests that long-term investors are capturing more value in comparison to short-term traders, often marking favorable conditions for accumulation during bear markets.
Thirdly, Pompliano pointed to the decreasing Bitcoin balances on exchanges, showing a decline from 17.6% during the COVID-19 pandemic to 15% now, indicating a diminished potential for future selling.
Lastly, he remarked on new buyers who are currently underwater on their investments, yet are approaching their breakeven point. “We know short-term holders are beginning to rebuild their unrealized gains, and this means a new wave of selling pressure is unlikely to materialize,” he asserted.
Despite this optimistic outlook, Pompliano acknowledged that bearish sentiments still dominate the market. Last week, he suggested that purchasing Bitcoin when it is “out of favor” might offer a valuable contrarian opportunity. He has been a strong proponent of Bitcoin as a hedge against dollar debasement, maintaining his long-term belief that the cryptocurrency could eventually reach $1 million.
Nonetheless, Bitcoin’s recent performance has raised some alarms. It fell below $70,000 early Tuesday amid concerns about the precarious U.S.-Iran ceasefire. Compounding the situation, Strategy Inc. reported a sell-off of $2.5 million in Bitcoin, marking a stark transition from being one of its largest purchasers to a seller.
As of the latest update, Bitcoin was trading at approximately $69,929.85, reflecting a decrease of 4.29% in the past 24 hours, according to information from Benzinga Pro. This fluctuation underscores the ongoing volatility inherent in the cryptocurrency market.
