Bitcoin Price Plummets Below $90,000 as Vanguard Executive Sounds Alarm
The Bitcoin price has retreated below $90,000, sparking concerns among investors as a senior executive at Vanguard warned that it resembles a ‘digital Labubu’, a plush toy that has seen its demand surge and then drop sharply this year. This warning comes as a bearish flag pattern forms on the daily chart, further fueling the downward trend.
The current Bitcoin price stands at $89,700, down significantly from its year-to-date high of $126,300. This pullback coincides with a substantial drop in American equities, with the Nasdaq 100 and S&P 500 indices falling by over 1% due to mounting artificial intelligence fears. The correlation between Bitcoin and traditional markets has been a subject of interest, with some arguing that Bitcoin’s volatility is linked to broader market trends.
Expert Warning: Bitcoin Lacks Fundamental Value
John Ameriks, a senior executive at Vanguard, expressed his skepticism about Bitcoin, stating that it lacks any income, compounding, and cash-flow properties, making it a risky investment. This sentiment is shared by other top investors, including Warren Buffett and the late Charlie Munger, who have also pointed out the risks associated with investing in cryptocurrencies. Ameriks’ statement came after Vanguard, which manages over $12 trillion in assets, started offering Bitcoin and other cryptocurrency ETFs on its platform, albeit with a cautious approach.
Ameriks emphasized that while Vanguard allows users to hold and buy these ETFs on their platform, they do so with discretion and without receiving advice on whether to buy or sell. This stance differs from competitors like BlackRock, Invesco, and Franklin Templeton, which have launched their own crypto ETFs. Notably, BlackRock’s IBIT has become one of its most profitable funds, generating hundreds of millions of dollars in fees annually. Vanguard’s cautious approach may be seen as a reflection of the company’s commitment to prudent investment strategies.
Technical Analysis: Bearish Flag Pattern Forms
The daily chart shows that Bitcoin has remained below the Supertrend indicator and has moved below the 50-day Exponential Moving Average. More alarmingly, the coin has formed a bearish flag pattern, which is considered one of the riskiest signs in technical analysis. This pattern suggests that the coin will likely continue its downward trend, with sellers targeting the ultimate support of the Murrey Math Lines at $75,000. A move above the Major S&R pivot point at $100,000 would be necessary to invalidate the bearish Bitcoin forecast.
BTC price chart | Source: crypto.news
In conclusion, the Bitcoin price has dropped below $90,000, fueled by a combination of factors, including a warning from a Vanguard executive and the formation of a bearish flag pattern on the daily chart. As the cryptocurrency market continues to evolve, investors must remain vigilant and consider multiple perspectives before making informed decisions. For more information and updates on the cryptocurrency market, visit https://crypto.news/vanguard-expert-warns-bitcoin-is-a-digital-labubu-as-risky-pattern-forms/
