Analysis: The likelihood of Bitcoin experiencing a significant drop in Q1 next year is very low.

Cryptocurrency entrepreneur Anthony Pompliano believes:

The failure of Bitcoin to witness a thrilling price surge by the end of this year

may actually serve as a factor to avoid a severe collapse in the first quarter of next year.

"Given the current volatility, it would be very surprising if Bitcoin were to experience a 70% or 80% drop while volatility has already been significantly compressed."

Bitcoin holders' short-term disappointment over the asset's failure to reach the $250,000 target for the year has overshadowed its stronger long-term performance.

"We must remember that Bitcoin has increased by 100% in two years and nearly 300% in three years. It has been compounding," Pompliano said, "It has always been a 'monster' presence in the financial markets."

Compared to the market's focus on Bitcoin's price drop since the beginning of the year, its decline in volatility has largely been overlooked.

"We didn’t see the expected 'surge peak' at the end of Q3 or the beginning of Q4, but similarly, we also didn’t see the kind of 80% drop that people typically expect."