Bitcoin fell sharply in recent days, and veteran holders barely blinked while many newer investors showed clear signs of panic.
According to crypto commentator Anthony Pompliano, drops of 30% or more are part of Bitcoin’s history — they have happened 21 times over the last decade and tend to occur about once every one and a half years.
Reports have disclosed that recent selling has pushed the token to lows around $82,000 during US trading.
“So Bitcoiners are used to this,” Pompliano said. “Now, who’s not used to this are the people who are coming from Wall Street. They’re not used to this type of volatility.”
Veterans Expect The Swings
Pompliano said people who have owned Bitcoin for years treat big swings as normal. He argued that volatility helped create the huge gains seen so far: Bitcoin has risen about 240x over the past decade.
He added that a 70% compound annual growth rate over that period is not likely to continue, but that even lower long-term returns — in the 20–35% range — would still beat stocks.
“I would be worried if Bitcoin’s volatility drops to zero,” he said, explaining why price swings can be a sign of an active market rather than a flaw.
US Markets And Liquidity Strains Played A Role
Matthew Sigel, head of digital assets research at VanEck, said the sell-off was mainly a US-session event. He linked the fall to tighter US liquidity and wider credit spreads, which made traders less willing to hold risky positions.
Sigel also noted that big spending plans tied to artificial intelligence were colliding with a fragile funding market, creating extra pressure.
Around year-end, other market participants face bonus decisions and portfolio reviews, which may add to selling pressure.
Analysts at Bitwise and other firms reported that Bitcoin’s volatility has risen in the past two months and was creeping back up to about 60 as of Monday.
Jeff Park of Bitwise pointed out that higher volatility can move prices sharply in either direction. Based on reports, Pompliano and others said that volatility is needed for the asset to make large gains over time, and that calm markets would actually be a warning sign for some investors.
ETFs Brought More Money — And More Flows Out
The arrival of Bitcoin ETFs has made it easier for big brokers’ clients to get exposure without holding coins directly.
Still, data from Morningstar’s Bryan Armour shows roughly $4.7 billion left crypto-related ETFs in November. Armour added that while some funds saw outflows, ETFs tied to smaller tokens such as Solana and XRP drew investments during the same period.
What Comes Next Is Unclear
Experts said predicting the next move is almost impossible because crypto markets remain highly volatile. Based on current signs, more swings are likely.
For now, Bitcoin’s history of deep pullbacks, the fresh presence of institutional players, and changing liquidity in US markets are all factors traders will watch closely as the year closes.
Featured image from Gemini, chart from TradingView
