## Bitcoin's Recent Dip: A Necessary Correction? Bitcoin recently experienced a significant price drop, causing concern among some investors. However, Anthony Pompliano, founder of Pomp Investments, views this downturn as a "healthy reset" for the market. He explained to CNBC that such volatility is normal for Bitcoin, noting that it has fallen 30% or more numerous times in its history. Pompliano highlights that these pullbacks are often followed by periods of sideways trading before Bitcoin resumes its upward trajectory. ## Leverage Removed, Market Stabilizing According to Pomp, a key factor contributing to the correction is the removal of excess leverage from the market. This deleveraging process, while painful in the short term, ultimately strengthens the market's foundation and makes it more sustainable. ## Volatility: A Catalyst for Future Growth Pompliano emphasizes that volatility is an inherent part of Bitcoin's price discovery process and is, in fact, necessary for long-term growth. He believes that after a period of consolidation, Bitcoin will gradually rise again, driven by its fundamental value proposition as a decentralized store of value and medium of exchange. ```