Amid the ongoing tumultuous period for the cryptocurrency market, the recent decline in Bitcoin prices has been closely linked to outflows from the U.S. Spot Bitcoin ETF. However, a fresh perspective has emerged, courtesy of Senior ETF analyst at Bloomberg, Eric Balchunas. Notably, his assessment offers a glimmer of hope amid the uncertainty, highlighting the relatively minor nature of the outflows.
So, let’s look at the insights that have sparked optimism in the face of recent market movements.
Bloomberg Analysts Offer Insights On Bitcoin ETF Outflow
Amid concerns over the declining price of Bitcoin and its correlation with outflows from the U.S. Spot Bitcoin ETF, Bloomberg analyst Eric Balchunas offers a nuanced perspective. He emphasizes that the recent outflows are not a cause for alarm, citing several key points.
In addition, Balchunas addresses the recent price drop in Bitcoin, attributing it to existing Bitcoin holders rather than institutional investors. Despite the downturn, he highlights Bitcoin’s impressive long-term performance, particularly in comparison to traditional assets like the Invesco QQQ.
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Implications for Investor Sentiment
Meanwhile, Eric Balchunas has highlighted Bitcoin price’s surge of around 144% since BlackRock filed for the Spot Bitcoin ETF with the SEC. On the other hand, he also noted that the flagship crypto has surged 47% in 2024, implying a 10X return of Invesco’s QQQ.
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