Wall Street’s Fear Drives Bitcoin Price Decline, Expert Explains

Institutional reactions drive Bitcoin's price drop, says Anthony Pompliano.

The pressure on the price of the leading cryptocurrency is linked to the reaction of institutional investors, as newcomers from Wall Street were unprepared for sharp price fluctuations. This was stated by Anthony Pompliano, founder of Pomp Investments.

Speaking on CNBC, the investor noted that downturns occur approximately every year and a half. Over the past decade, Bitcoin’s price has dropped by 30% or more 21 times.

“Bitcoiners are used to this. But people from Wall Street are not. Newcomers are very frightened,” Pompliano explained.

In his view, the situation is exacerbated by the end of the year. Fund managers are concerned about bonuses and sell assets they have begun to doubt, creating additional pressure on prices.

At the time of writing, Bitcoin is trading at ~$87,800, having gained 1.1% over the day.

The Role of the US in the Decline

Matthew Sigel, head of digital asset research at VanEck, confirmed that the recent plunge to $82,000 was triggered by the American trading session.

Bitcoin’s selloff was overwhelmingly a US-session phenomenon.

The driver: tightening US liquidity and widening credit spreads as AI-capex fears collided with a more fragile funding market.

h/t @Patrick_Bush_VE pic.twitter.com/ow2iJT5Y9x

— matthew sigel, recovering CFA (@matthew_sigel) November 24, 2025

Among the reasons, the analyst highlighted the tightening of liquidity and widening credit spreads in the US. Concerns about massive AI expenditures coincided with the fragility of funding markets.

Volatility is Normal

Pompliano emphasized that seasoned industry participants view price fluctuations as a sign of a healthy market.

“You need volatility for the asset to grow. I would be worried if it were zero,” he noted.

The entrepreneur added that Bitcoin’s growth rate will slow compared to the past decade (70% annually). However, even with rates of 20-35%, the cryptocurrency will still outperform the stock market.

In November, Mike McGlone of Bloomberg Intelligence predicted that in 2026, digital gold will fall by about 60% from its historical high above $126,000.