Bitcoin Volatility Returns Despite ETF Boom

• ETFs brought bigger investors, but OG holders selling caused Bitcoin’s sudden price swings.

• Long-term bulls may win as Bitcoin cycles between pumps and consolidations over time.

• Technical signals hint caution; traders should stay flexible and follow key price levels.

Bitcoin traders are facing renewed turbulence as the once-hyped ETF effect struggles to stabilize markets. According to Bloomberg analyst Eric Balchunas, the initial expectation of reduced volatility following Bitcoin ETF adoption has not materialized.

He admitted, “I thought ETFs retail replaced dumdum pre-FTX retail = more stability but what I didn’t factor in was the OGs puking so much.” Balchunas highlighted that long-term holders, previously considered resilient, sold aggressively after rapid gains, emphasizing that the 450% increase over two years was a clear warning sign.

Earlier, Balchunas praised ETFs for attracting bigger investors, noting, “Since BlackRock filing Bitcoin is up like 250% with much less volatility and no vomit-inducing drawdowns.” However, the promise of smooth gains collided with reality, as seasoned holders’ profit-taking triggered sudden swings. Besides, these developments suggest that Bitcoin’s behavior remains highly reactive, even with institutional backing.

Differing Analyst Perspectives

Other analysts offer contrasting interpretations. Mitchell Askew projects a longer-term bullish scenario, stating, “BTC is going to $1,000,000 over the next 10 years through a consistent oscillation between ‘pump’ and ‘consolidate.’”

He argues the post-ETF market will trade in predictable patterns, shaking out short-term speculators while rewarding long-term holders. Additionally, Askew predicts Bitcoin’s newfound stability may bore casual investors but ultimately support adoption.

Meanwhile, TheGANNMan warns traders to remain cautious. He explains, “One count (via the EW Oscillator) pointed to a less-probable Expanded Flat, implying a sideways structure. The other suggested a larger 5-wave sequence, potentially completing Wave A of a broader ABC ZigZag correction to the downside.” Consequently, he emphasizes flexibility, advising traders to respect levels and react to market price movements.