Anthony Pompliano says Bitcoin’s next leg up depends on a macro pivot — and a looming “monetary slingshot” could be the trigger.
Speaking from the floor of Bitcoin Investor Week on FOX Business, ProCap Financial chairman Anthony Pompliano argued that Bitcoin’s long-term value proposition is intact, but the path there will be bumpy while deflation dominates the economic narrative. Bitcoin has reportedly slid roughly 50% from a $126,000 all-time high to about $70,000 as concerns about falling prices have eclipsed inflation fears.
“Can you hold an asset when there is not high inflation in your face on a day to day basis?” Pompliano asked, framing the current period as a test for holders. He urged those who liked Bitcoin at $126,000 to “love it at $70,000.”
Pompliano’s thesis: policymakers will eventually respond to deflation by printing money to stoke activity. That response — the “monetary slingshot” — would devalue the currency and lift scarce assets like Bitcoin. “We’re going to print a bunch of money to try to deal with deflation. And all of a sudden, as we come out of that thing, now we’re going to see that the currency has been devalued and Bitcoin becomes more valuable than ever,” he said. “If they print money, Bitcoin is going higher over the long run.”
Why deflation is the wildcard now
- Inflation data has cooled across multiple categories: rents have reportedly fallen for 32 consecutive months, while food and gasoline prices are trending down.
- Technology is adding deflationary pressure: rapid adoption of AI and robotics is displacing jobs and reducing labor-driven cost pressures.
- Trade policy also plays a role: tariff-related inflation fears earlier in 2025 helped spark a summer Bitcoin rally, but once that risk dissipated, demand cooled.
Market repercussions and where funds flowed
- As the inflation narrative faded, gold and silver benefited — partly from central bank purchases rather than retail “debasement” trades.
- Bitcoin, by contrast, didn’t fully join the rally, Pompliano says, because investors weighed the immediate risk of deflation against Bitcoin’s long-term hedge appeal. “Do you need to put a ton of your money into Bitcoin if deflation is the bigger risk?” he asked.
- He also noted that some foreign central banks are diversifying away from fiat but “are not ready to buy Bitcoin,” further limiting institutional inflows for now.
Bottom line
Pompliano frames the current lull as a holding-period scenario: deflation can mute Bitcoin’s price in the near term, but policy responses to counteract falling prices — namely more money printing — could re-ignite Bitcoin’s upward trajectory over the long term. For investors, the key question is whether they can hold through a period when currency debasement is less visible in day-to-day inflation readings.
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