The volatility of bitcoin has actually been coming down, says Anthony Pompliano

Joe Kernen (Co-anchor of Squawk Box) 00:00.070

let's look at bitcoin prices this morning oh my god there might not be another interest rate cut better sell some bitcoin there

Joe Kernen (Co-anchor of Squawk Box) 00:07.830

it is right now down five ninety eight at eighty seven we'll talk about where it's been with anthony pompliano founder and CEO is looking at coin base got as high as three hundred back in twenty one then it went all the way down to thirty then it got all the way up anthony and

Joe Kernen (Co-anchor of Squawk Box) 00:24.150

then we'll get the to bitcoin all the way up to almost four hundred again now it's almost been cut in half again it's a very down for the year bitcoin is now down for the year and down thirty percent from its highs you know what

Anthony Pompliano (Founder & CEO) 00:36.430

i think is happening here is i've been an investor in coin base since the private markets and one of the things that's really interesting is going after this everything exchange they basically want you to be able to buy public stocks crypto prediction markets perps everything on

Anthony Pompliano (Founder & CEO) 00:47.390

one exchange but also if you see robin hood is doing the same thing coin base came from the crypto side robin hood came from the brokerage side you also are starting to see now the traditional exchanges and the traditional financial players you know larry fink recently said that

Anthony Pompliano (Founder & CEO) 00:59.390

artificial intelligence and tokenization are the two big themes of finance going forward so what's going to happen here is everyone is going to meet in the middle from different areas but ultimately they are all fighting for who is going to live at the center of artificial

Anthony Pompliano (Founder & CEO) 01:11.310

intelligence crypto and ultimately these everything exchanges where people can trade whatever they want whenever they want twenty four seven and so i think that the key for public market investors is trying to figure out who's going to get there first and who actually has the

Anthony Pompliano (Founder & CEO) 01:24.870

most durable business now coinbase has somewhat of an advantage they have a hundred plus million users and they've come at it from a crypto friendly standpoint many of these technologies are using that crypto plumbing and so having kind of a start in the crypto side is going to

Anthony Pompliano (Founder & CEO) 01:37.550

be a big advantage but i would not discount the traditional players these people have a lot of money they're very ambitious and they understand the regulatory apparatus and so you're going to have this kind of cutthroat competition and ultimately the winner is the individual

Anthony Pompliano (Founder & CEO) 01:49.870

investor or the individual citizen because they're going to get lower prices faster you know market access and ultimately better pricing on these different opportunities bitcoin

Joe Kernen (Co-anchor of Squawk Box) 02:00.550

was one twenty five there were people talking about a hundred and fifty by the by the end of the year even higher than that and then long term over a million dollars a coin it hit a road a bump in the road on the way to to some of those numbers right took a long wrong turn at

Joe Kernen (Co-anchor of Squawk Box) 02:18.640

albuquerque or or something you point out what it's up a hundred percent in two years yeah

Anthony Pompliano (Founder & CEO) 02:23.040

i mean look i i think that there are a lot of bitcoin investors that are disappointed that bitcoin did not go to one fifty two hundred two hundred and fifty i mean take your crazy number that people were predicting at the same time we have to remember bitcoin is up a hundred

Anthony Pompliano (Founder & CEO) 02:33.870

percent in two years it's up almost three hundred percent in three years it has been compounding the compounding your growth rate of bitcoin over the last decade is seventy percent this thing has been a monster in financial markets but it has volatility and so one of the aspects

Anthony Pompliano (Founder & CEO) 02:47.310

of bitcoin that people aren't talking about is that the volatility of bitcoin has actually been coming down and so we didn't get a blow off top that i think people expected in kind of the end of Q three or beginning of Q four but we also haven't seen the big eighty percent

Anthony Pompliano (Founder & CEO) 02:59.550

drawdown that people normally expect as well now who knows what's going to happen in the future you could see the bitcoin price go down a little bit more or you could see it turn around and start to kind of grind up going into the midterm

Joe Kernen (Co-anchor of Squawk Box) 03:09.390

could you see it go down a lot more you said a little bit more

Anthony Pompliano (Founder & CEO) 03:11.990

you you could but i think given where the volatility is right now it would be very surprising that bitcoins volatility has drastically compressed and yet still you could get a seventy or eighty percent drawdown

Joe Kernen (Co-anchor of Squawk Box) 03:21.550

well the charts were in the seventies that katie stockton talked about that was when we were still over a hundred she was talking about after the first break under a hundred i think

Anthony Pompliano (Founder & CEO) 03:30.470

one of the most interesting kind of theories if you will that that i've heard is matthew siegel who's over at van eck he basically explained he's like look if bitcoins volatility got cut in half then it rather than get an eighty percent drawdown you would expect something like a

Anthony Pompliano (Founder & CEO) 03:43.150

forty percent drawdown that's about what we got from the hundred and twenty five hundred twenty six thousand dollar price point down to around eighty thousand dollars and so again does that mean that's what's going to happen not necessarily but i do think that this compression

Anthony Pompliano (Founder & CEO) 03:54.110

of volatility means that the holders will be a little bit disappointed on the upside because you're not going to get those blow off tops but also there is some degree of safety or a persistent bid on the bottom side where you're not going to see these huge you know seventy five

Anthony Pompliano (Founder & CEO) 04:06.430

eighty percent drawdowns as well

Joe Kernen (Co-anchor of Squawk Box) 04:07.550

so what is that hasn't happened yet can happen for bitcoin either with regulators or washington or i don't know security wise more more adoption sovereigns that what what's the next there there's nothing on the horizon really is there is is washington still matter do you need

Joe Kernen (Co-anchor of Squawk Box) 04:26.960

that that legislation we don't have it yet really

Anthony Pompliano (Founder & CEO) 04:29.560

again if we go back to this idea of artificial intelligence and bitcoin or crypto or kind of the two big areas where where the future of finance is what i believe is going to happen here is i think that AI and AI agents are going to be often they're going to go out they're going

Anthony Pompliano (Founder & CEO) 04:42.150

to make money for these companies you're going to start to see AI applied inside of these financial firms and they're going to start to automate away tasks and then eventually jobs and they are going to be that offensive force to go and drive revenue but then what's going to

Anthony Pompliano (Founder & CEO) 04:52.870

happen is that these companies are going to take that capital and they're going to go and going to stick it into crypto on their balance sheet you can think of bitcoin and crypto as the defense and actually protecting that purchasing power now what i find very interesting is

Anthony Pompliano (Founder & CEO) 05:03.390

that that defense some of it's going to be bitcoin some of it's going to be stable coins some of it may even be tokenized gold but i think that this combination of these two technologies is really where the finance is going and you see it from the startups but also you see it

Anthony Pompliano (Founder & CEO) 05:15.070

from the large firms like blackrock

Joe Kernen (Co-anchor of Squawk Box) 05:16.630

and how long for years

Anthony Pompliano (Founder & CEO) 05:18.630

i think that you're going to see these companies start really announcing stuff over the next six months