Bitcoin and AI remain in decade-long bullish trend 

In a CNBC interview Monday morning, Anthony Pompliano discussed how Bitcoin’s current decline follows uptrends and discussed how artificial intelligence and Bitcoin will work together in the next decade.

Pompliano highlighted the decade-long bullish trends for both AI and Bitcoin, noting their potential to create and store wealth.

“I’m going to go to the office and buy some more,” Pompliano said about his desire to buy more Bitcoin (BTC) at cheaper prices.

Bitcoin dropped 15 percent

When asked about the current decline in Bitcoin price, Pompliano remained optimistic about the digital asset, claiming that retail investors, traditional profit takers and broader market dynamics are all in play.

In emerging markets, Pompliano said 30% pullbacks are expected. Therefore, the current 15% decline is consistent with reasonable estimates.

“I think it’s important to put this in context: Bitcoin is up 40% year-to-date. It is up 100% from last year,” Pompliano said. “This is quite expected in terms of volatility.”

Pompliano also mentioned the change in trading habits, profit takers, and summer season as reasons for Bitcoin’s price decline. Typically asset trading declines during the summer months and many people make profits during this period.

“When an asset gets too high, people start taking profits…we saw this explosive rise to start the year, and people naturally start taking some of that profit,” Pompliano said.

Artificial Intelligence and Bitcoin

Bitcoin and artificial intelligence (AI) are emerging as forces working together to reform the way wealth is created and stored. Pompliano said artificial intelligence is changing the way we manage, analyze and protect digital assets, with Bitcoin solidifying its position as a trusted store of value and decentralized financial asset.

“We’re going into this automated world where AI will create tremendous amounts of wealth and Bitcoin will protect that wealth,” Pompliano said.

Citing “big tailwinds” supporting both AI and crypto development, Pompliano said AI productivity could boost global GDP. This dovetails with other investor trends, as Binance Senior ETF Analyst Eric Balchunas predicts that global ETF assets will triple from the current $13 trillion to $35 trillion by 2035.

ETFs

When spot crypto ETFs were approved earlier this year, much of the growth in crypto investments as a result of this announcement came from retail investors. This suggests that a significant portion of the funds invested in spot ETFs come from individual investors rather than large traditional financial institutions.

“About 80 percent of the inflows into the ETF were actually retail sales,” Pompliano said. “What takes a lot of time in these organizations is that advisors have to go to individual investors and committees…that takes time.”

Spot crypto ETFs earlier this year led to a notable increase in crypto investments driven primarily by retail investors rather than large traditional financial institutions.