Bitcoin (CRYPTO: BTC) plunged toward $68,000 Friday, breaking its recent recovery trend as Bloomberg ETF analyst Eric Balchunas argued that relatively modest institutional outflows suggest investors are holding firm despite the selloff.
Speaking with crypto commentator Scott Melker, Balchunas noted that Bitcoin ETFs’ $1.4 billion year-to-date outflows are encouraging despite the rough 50% price decline from its $126,000 peak.
“You’re holding your ground. You’re treading water in a year that sucks,” Balchunas said.
He noted that ETF flows typically follow Bitcoin’s price movements and compared its weakness to gold ETFs’ prolonged stagnation before reaching new highs.
Balchunas believes weak sentiment does not undermine Bitcoin’s long-term adoption.
Could Bitcoin’s $67,000 Support Trigger A Recovery?
Melker highlighted Bitcoin’s breakdown below $75,000, which disrupted the pattern of higher highs and higher lows established during its recent recovery.
He identified several technical levels worth watching:
- $75,000: The former support level Bitcoin would need to reclaim to improve its market structure.
- $67,000: A potential support zone supported by previous consolidation.
- 200-week moving average: A key longer-term trend indicator that could help determine whether the broader recovery remains intact.
Melker warned that Bitcoin’s break below its 50-week moving average adds to the technical uncertainty.
He suggested the $67,000 region could attract buyers given its historical trading activity.
Bitcoin ETFs Changing How Investors Hold BTC
Balchunas highlighted roughly $3.6 billion in recent spot-to-ETF conversions, signaling a shift from self-custody toward regulated investment products.
He said ETFs offer convenience, institutional custody and oversight but lack Bitcoin’s censorship resistance and independence through self-custody.
Investors should distinguish between Bitcoin’s underlying network and the exchanges or custodians that hold assets on their behalf.
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