Today in crypto: Anthony Pompliano says Bitcoin’s dampened price means it won’t crash next year, the International Monetary Fund pressed El Salvador to sell its Chivo Bitcoin wallet and Ether ETFs snapped an outflow streak as XRP products logged their best day since early December.
Bitcoin won’t crash in Q1, lacks ‘crazy’ year-end price: Pomp
The lack of an exciting year-end price rally for Bitcoin (BTC) may prevent a significant crash in the first quarter of next year, Anthony Pompliano said on Tuesday.
“Given where the volatility is right now, it would be very surprising that Bitcoin’s volatility has drastically compressed and yet still could get a 70% or 80% drawdown,” Pompliano said.
“We didn’t get a blowoff top that I think people expected at the end of Q3, or beginning of Q4, but we haven’t seen the big 80% drawdown that people normally expect as well,” he added.
Pompliano said that the short-term disappointment from Bitcoin holders over it not reaching $250,000 this year overlooks its broader performance. “We have to remember that Bitcoin is up 100% in two years. It’s up almost 300% in three years. It has been compounding,” he said.
IMF says El Salvador in talks to sell state-run Chivo Bitcoin wallet
The International Monetary Fund’s mission chief for El Salvador issued a statement confirming that government authorities were proceeding with negotiations for the sale of the country’s Chivo Bitcoin wallet.
In a Monday statement, the IMF said El Salvador’s government was continuing to discuss its Bitcoin (BTC) project with the fund’s officials, and “negotiations for the sale of the government e-wallet Chivo are well advanced.” The announcement signaled that the government may be preparing to sell some or all of its crypto holdings in the Chivo wallet.
The statement followed a May deal with El Salvador in which the IMF would pay $120 million as part of a 2024 loan agreement for $1.4 billion. As part of the deal, the government would stop acquiring Bitcoin.
It’s unclear whether El Salvador is abiding by the terms of the deal. Though the IMF reported in July that the country’s government had not purchased any BTC since December 2024, El Salvador’s Bitcoin Office continues to announce crypto buys, including 1,090 Bitcoin worth about $100 million in November.
According to the terms of the IMF-El Salvador deal made public, the government would make public sector engagement of BTC-related economic activity “confined,” the private sector’s acceptance of Bitcoin would be voluntary, and it would wind down involvement in the Chivo wallet. Cointelegraph reached out to the IMF for comment, and a spokesperson said negotiations for the sale of Chivo were ongoing and they could not comment about the details of this transaction.
El Salvador recognized Bitcoin as legal tender in 2021 and began acquiring the cryptocurrency as part of a strategy largely pushed by President Nayib Bukele. According to data provided by the country’s Bitcoin Office, the government held 7,509 Bitcoin as of Monday, worth about $659 million at the time of publication.
Ether ETFs snap outflow streak while XRP products post multi-week highs
Spot Ether ETFs in the US recorded $84.6 million in net inflows on Monday, breaking a seven-day outflow streak in one of the biggest single-day reversals this month.
The shift came after over $700 million exited spot Ether (ETH) products last week, highlighting a pause in selling pressure. According to SoSoValue data, the rebound lifted cumulative net inflows to about $12.5 billion.
At the same time, XRP (XRP) ETFs extended their uninterrupted inflow streak, recording $43.9 million in net inflows on Monday, their strongest daily showing since early December. XRP ETFs have not experienced a single net outflow day since their launch, resulting in cumulative net inflows exceeding $1.1 billion.
While XRP ETF volumes remain modest compared to Ether products, the consistency of the inflows stands out. Instead of the rapid in-and-out rotation, the data suggested that early allocators are gradually building exposure, treating the asset as a positioning tool rather than a short-term trade.
