Vanguard Expert Calls Bitcoin a ‘Digital Labubu’ Amid Risky Trends

Vanguard expert warns Bitcoin is a ‘digital Labubu’ as risky pattern forms - 1

Summary: Bitcoin's price has dipped below $90,000, prompting concerns from a Vanguard executive who describes it as a ‘digital Labubu’. As bearish patterns emerge, experts point to significant risks associated with the cryptocurrency despite heightened interest in Bitcoin ETFs.

Key Takeaways:

Bitcoin's price fell to $89,700 from a peak of $126,300 earlier this year.
Vanguard's John Ameriks raises concerns about Bitcoin being a risky investment, similar to the fluctuating demand for a plush toy called Labubu.
Other investors like Warren Buffett have echoed these risks.
Vanguard, which manages over $12 trillion, has yet to launch crypto ETFs, unlike competitors like BlackRock.
Technical analysis indicates a potential further decline in Bitcoin’s price, aiming for a support level at $75,000.

Bitcoin Price Retreats

Bitcoin's price has recently fallen below the $90,000 mark, with current trading at $89,700. This drop follows its impressive year-to-date high of $126,300. The decrease in Bitcoin's value coincided with a notable decline in American stock markets, as the Nasdaq 100 and S&P 500 indices each fell more than 1%, fueled by rising apprehensions surrounding artificial intelligence.

Vanguard's Warning

John Ameriks, a senior executive at Vanguard, has characterized Bitcoin as a ‘digital Labubu’. The name refers to a plush toy from Pop-Mart that experienced a boom followed by a sharp decline in demand earlier this year. Ameriks expressed concerns that Bitcoin lacks income-generating factors, making it a risky investment. This sentiment is echoed by notable investors, including Warren Buffett and the late Charlie Munger.

His comments follow a period in which Vanguard, a firm managing over $12 trillion in assets, began offering Bitcoin along with other cryptocurrency ETFs on its platform. Ameriks pointed out that, in contrast to competitors like BlackRock, Invesco, and Franklin Templeton, which have launched cryptocurrency ETFs, Vanguard has not done so, even amid attractive financial prospects. For instance, BlackRock’s IBIT has turned into its most profitable fund, generating substantial fees.

Technical Analysis of Bitcoin Price

Vanguard expert warns Bitcoin is a ‘digital Labubu’ as risky pattern forms - 2

According to analysis of Bitcoin's daily chart, the cryptocurrency remains below the Supertrend indicator and has fallen under the 50-day Exponential Moving Average. The formation of a bearish flag pattern suggests that Bitcoin could continue its downward trend, with sellers looking to target the Murrey Math Lines support level at $75,000. A price movement above the key resistance and support pivot point at $100,000 could void this bearish outlook for Bitcoin.

As the cryptocurrency market continues to evolve, it is essential for investors to remain vigilant and informed about the associated risks and market patterns.