• Anthony Pompliano sees Bitcoin as undervalued at $116,812.62.
• He says volatility is moderating as institutions reshape the market.
• Pompliano expects stronger Bitcoin activity from September onward.

Bitcoin was trading at $116,812.62 when Anthony Pompliano, founder of Pomp Investments, appeared on CNBC. He said the asset is undervalued at current levels and that recent declines should not alarm investors.

Pompliano described the pullbacks as smaller than past cycles, showing that Bitcoin is evolving into a more mature market. Unlike earlier phases marked by steep 30% declines, the recent moves have been in the range of 10% to 15%.

He explained that this shift signals greater stability. BTC’s price action, once defined by extreme surges and deep crashes, is now showing muted volatility.

That, he believes, reflects the growing influence of institutions and exchange-traded funds. The entry of such players reduces the dominance of retail investors, who often reacted quickly to fear and greed.

Institutional Entry Brings Stability to Bitcoin Market

According to Pompliano, BTC no longer represents a contrarian bet but a mainstream trade. Institutional investment calls for reduced volatility as one of the requirements.

While they do want higher growth than from traditional assets, they do not want swings of hundreds of percent and subsequent abrupt losses. The entry of public companies and of ETFs has brought a new wave of discipline into the market.

He also noted the rotation from trading-driven retail to institutional entry is redefining the holder base. Institutional players like funds and companies are less likely to panic sell, building a more solid foundation.

Certain massive holders, he explained, even switch into Bitcoin ETFs as a form of extra protection, but his opinion is this will never replace the need for self-custody within the community.

Pompliano also pointed out that BTC’s volatility will remain lower than in previous years. Investors expecting a rapid surge to $400,000 or $500,000 may be disappointed.

Meanwhile, extreme bear market plunges of 85% to 90% are also unlikely to recur. The end result, he explained, is an asset that behaves like gold, ie, steady long-term value and fewer shocks.

Potential Fed Rate Cut Could Boost Bitcoin

Later, Pompliano envisions fresh action in the months of September and October. Pompliano added Bitcoin appears oversold now, and the volatility seasonal bias favors the end of the third quarter.

He also stated that a possible rate cut by the Federal Reserve and fresh purchases by treasury-oriented Bitcoin firms may add to the push.

He also confirmed the presence of some investors who are diversifying into alternative currencies such as Ethereum or stablecoin initiatives. However, he reiterated the point that Bitcoin controls the crypto market.

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