Why's bitcoin price falling?

Bitcoin may be struggling at the moment, but according to Anthony Pompliano, that could simply be part of a much larger market cycle.

Speaking in an interview on CNBC’s Squawk Box, Pompliano explained that many investors are currently chasing artificial intelligence stocks because of their strong momentum and record highs, while Bitcoin has attracted comparatively less attention.

According to Pompliano, markets typically move in cycles, with the assets investors ignore at one stage often becoming the biggest winners later on.

Pompliano said: “What people need to understand is that while AI stocks are surging and everyone is chasing momentum and record prices, the asset you should probably be buying is the one that has fallen out of favor for now but will regain attention later.”

Bitcoin still outperforms over the long term

Pompliano rejected the growing narrative that Bitcoin is a “poor-performing” asset, pointing to its long-term performance record.

He explained that when looking at one-year, two-year, five-year, and even ten-year periods, both Bitcoin and gold have consistently outperformed the S&P 500 in terms of compound annual growth rates.

Although gold is generally viewed as a safer and less volatile asset than Bitcoin, Pompliano argued that both assets have quietly delivered stronger long-term returns than many traditional equities.

At the same time, he acknowledged that recent underperformance has frustrated many investors, particularly as Bitcoin has failed to keep pace with the powerful rally in AI-related stocks over the past two years.

Money printing could become a catalyst for Bitcoin

Pompliano also linked Bitcoin’s future performance to broader macroeconomic conditions, particularly the continued expansion of the US money supply.

He argued that ongoing government spending, liquidity injections, and rising debt levels are likely to renew investor interest in Bitcoin over time.

“The big question is: Will the US government stop printing money? If it doesn’t—and I don’t think it will—then Bitcoin will eventually come back into focus,” Pompliano said.

He added that although Bitcoin has recently lost some appeal compared with high-flying AI stocks, market sentiment can shift quickly once investors begin searching again for alternative stores of value.