Bitcoin's (CRYPTO: BTC) brief decline below $60,000 may feel painful for investors, but Anthony Pompliano says the current downturn is shaping up to be one of the healthiest bear markets in the asset’s history.

‘One Of The Best Bear Markets’

Speaking on CNBC Squawk Box on June 10, Pompliano said Bitcoin’s recent weakness continues to align with the four-year market cycle that has historically defined the cryptocurrency’s boom-and-bust periods.

BTC prices have seen a 23% drop over the past 30-day trading and more than 50% plunge from its October 2025 peak. This leads some investors to question whether the cycle framework remains intact.

Pompliano argues the opposite. "I think more and more people are convinced that that four-year cycle is a real thing," he said.

Despite the sharp decline, Pompliano noted that Bitcoin has avoided the devastating 80%-plus collapses that characterized previous bear markets.

“This is one of the best bear markets,” he said.

On-Chain Indicators Narrate Different Story

Pompliano pointed to several on-chain indicators that historically appear near major cycle bottoms.

One metric he highlighted shows the percentage of Bitcoin supply being held at a loss has now surpassed the percentage being held in profit.

Historically, such conditions have often coincided with periods when long-term investors begin accumulating.

Why The BTC Long-Term Thesis Remains Intact

Pompliano also defended Bitcoin’s role as a hedge against currency debasement, even as expectations for Federal Reserve rate cuts continue to fade.

While higher interest rates can create short-term headwinds for risk assets, he argued the larger issue remains persistent government spending and rising national debt.

“The government can’t stop printing money,” he said. CPI data released today shows May inflation rate climbed to 4.2%, highest since April 2023.

According to Pompliano, investors increasingly view scarce assets such as Bitcoin and gold as long-term beneficiaries of ongoing fiscal expansion and currency debasement.

He added that a growing number of investors are allocating portions of their portfolios to crypto as part of that thesis.

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