Bitcoin’s Next Hurdle Isn’t Inflation – It’s Investor Patience, Pompliano Says
Bitcoin traders are being pushed to rethink why they are holding the coin as headline inflation cools and market sentiment sours. Prices have fallen from recent highs and fear now dominates many chat rooms and trading desks.
According to live market feeds, Bitcoin has traded near the high-60Ks, and market data shows a sharp reversal over the past month.
Inflation Numbers and Investor Attitudes
Reports note that consumer inflation fell to 2.4% in January from 2.7% in December, a slight increase in consumer prices that changes the background many owners use to justify the case of Bitcoin as a hedge.
Anthony Pompliano, a long-time Bitcoin advocate and entrepreneur, framed the present as a test of his guilt. He asked if owners could keep faith in a rare digital coin when high inflation is not reflected in grocery receipts or expenses.
Pompliano argued that deep inflation would return later and used the phrase “currency sling” to describe a time when the dollar erodes but the effect is temporarily hidden.
Join me @cvpayne yesterday from the bottom of Bitcoin Investor Week to discuss bitcoin, inflation, inflation, and the strength of the US economy. pic.twitter.com/eTYeeCfGul
— Anthony Pompliano 🌪 (@APompliano) February 12, 2026
The Monetary Slingshot and the Long-Term Bet
Under Pompliano’s view, central bankers’ actions now — reducing rates or adding money over time to cushion growth shocks — will set the stage for a rare asset recovery.
That’s the narrative many traders trade: limited supply meets rising capital. However, others point out that low headline inflation reduces the urgency of holding assets whose primary concern is protection against currency downturns.
Some analysts have warned that headline inflation may look better on paper than how people feel in everyday life, a reminder that data and opinion can differ.
Price Action and Traders’ Watch
Emotional scales emphasize this tension. The Crypto Fear & Greed Index has entered the realm of extreme fear, showing a crowd running away from risk rather than rallying.
That kind of reading usually precedes big rebounds, but it can also mark the start of a deeper correction if broader liquidity shifts continue.
At the same time, the US dollar has softened slightly against major currencies in recent weeks, a move some say is the first sign of the currency pressures Pompliano warned about; some analysts insist that a weak dollar does not immediately translate into higher crypto prices.
The stakes are simple. Some owners will use the current lull to buy more, treating the dip as a discount on an idea they’ve supported for years.
Others will look for clear signs – persistent inflation or policy moves that clearly devalue the currency – before making new investments. Reports show both camps are active in the market now, which helps explain why volatility remains high.
Currently, Bitcoin’s role as a long-term store of value is being debated in real time. Temporary pain is evident; long bet.
Market behavior in the coming weeks should indicate whether the conviction remains or whether the narrative should adjust as the major headlines continue to change.
Featured image from Unsplash, chart from TradingView
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