BALCHUNAS: BITCOIN VOLATILITY TO ENDURE DESPITE ETF INFLOWS

Bloomberg senior ETF analyst Eric Balchunas noted his prior assessment of a robust Bitcoin ETF investor base largely holds. However, his expectation that ETF inflows would mitigate significant market volatility proved inaccurate.

He attributed this miscalculation to underestimating concentrated selling pressure from early holders at elevated price levels, despite his initial theory that retail ETF capital would replace highly speculative pre-FTX investors.

Balchunas also highlighted Bitcoin's approximately 450% two-year surge as a potential risk indicator, noting rapid gains often correlate with high volatility. Consequently, Bitcoin's high-volatility, high-risk attributes are projected to continue.

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