Bitcoin’s recent slump has tested even the most committed long-term holders, but one well-known crypto advocate believes the bigger move may still be ahead — just not right away.
Speaking on FOX Business, ProCap Financial chairman Anthony Pompliano said Bitcoin’s long-term story hasn’t changed, even as the market struggles with a new macroeconomic reality. Instead of high inflation, deflation is now the main concern, and that shift has cooled demand for riskier assets like crypto.
Bitcoin has dropped around 50% from its peak near $126,000, sliding back to roughly $70,000. For Pompliano, this pullback is more than just a price correction — it’s a stress test for investors who believe in Bitcoin as a hedge against currency debasement.
He argued that it’s easy to support Bitcoin when inflation is high and the value of money is visibly eroding. The real challenge, he said, is holding onto that belief when prices are falling and the pressure of inflation fades from daily life. Still, Pompliano’s message to long-term believers was clear: if Bitcoin looked attractive at six figures, it should look even more compelling after a major pullback.
The “monetary slingshot” effect
Pompliano outlined what he calls a “monetary slingshot” scenario. As deflation sets in, central banks are likely to respond by printing more money to stimulate the economy. That flood of liquidity may not boost Bitcoin immediately, but it could set the stage for a powerful rebound once deflationary pressures ease.
In his view, the pattern is familiar: governments turn on the money printer to fight economic slowdowns, and once growth returns, the newly created currency weakens purchasing power. When that happens, scarce assets such as Bitcoin tend to shine.
“If they print money, Bitcoin is going higher over the long run,” he said, pointing to the asset’s fixed supply as its core appeal.
Why Bitcoin is lagging for now
Recent data shows prices falling across several everyday categories. Rents have reportedly declined for many consecutive months, and food and fuel prices are also trending lower. On top of that, automation is accelerating deflationary pressure. Advances in artificial intelligence and robotics are replacing jobs faster than many expected, pushing costs down further across parts of the economy.
This environment has changed investor behavior. Bitcoin enjoyed a rally earlier in the summer of 2025 when fears of tariff-driven inflation flared up. Interest in “currency debasement” spiked, helping assets like gold and silver surge. But as it became clear that inflation wasn’t surging after all, Bitcoin failed to keep pace.
Gold, meanwhile, has benefited from strong buying by central banks. Pompliano noted that while many foreign central banks are gradually moving away from fiat currencies, they aren’t yet ready to make Bitcoin part of their reserves.
For now, deflation is stealing the spotlight. But if central banks respond with aggressive money printing, Pompliano believes Bitcoin could be poised for its next major chapter once the macro winds shift again.
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