Today, December 12, Bitcoin’s price dipped below $90,000 as a high-ranking executive at Vanguard described it as a ‘digital Labubu’, coinciding with the emergence of a concerning pattern.
Summary
- Bitcoin’s price has fallen below the crucial support level of $90,000.
- A senior executive from Vanguard referred to Bitcoin as a digital Labubu.
- The cryptocurrency has created a bearish flag pattern on the daily chart.
At the time of writing, Bitcoin (BTC) was trading at $89,700, significantly down from its year-to-date peak of $126,300. This decline happened alongside a notable drop in U.S. stock markets, with both the Nasdaq 100 and S&P 500 indices decreasing by more than 1% amidst rising fears related to artificial intelligence.
The retreat in Bitcoin’s price followed comments from John Ameriks, a senior figure at Vanguard, who labeled it a ‘Digital Labubu’. Labubu, a plush toy produced by Pop-Mart, has experienced a spike in demand followed by a sharp decrease this year.
Ameriks asserted that Bitcoin lacks income generation, compounding effect, and cash flow, rendering it a precarious investment. Other prominent investors such as Warren Buffett and the late Charlie Munger have echoed these concerns.
This statement came shortly after Vanguard, managing over $12 trillion in assets, began offering Bitcoin and other cryptocurrency ETFs on its platform. Ameriks mentioned:
“We allow individuals to purchase and hold these ETFs on our platform if they wish, but we encourage them to do so judiciously. We will not advise them on whether to buy or sell or which cryptocurrency tokens to hold.”
In contrast to its competitors like BlackRock, Invesco, and Franklin Templeton, Vanguard has yet to launch any crypto ETFs despite potential financial benefits. For instance, BlackRock’s IBIT has become its most prosperous fund, raking in hundreds of millions in fees each year.
Technical Analysis Indicates a Possible Breakdown for Bitcoin
BTC price chart | Source: crypto.news
Currently, the daily chart indicates that Bitcoin remains below the Supertrend indicator and has fallen beneath the 50-day Exponential Moving Average.
The formation of a bearish flag pattern suggests significant risk in technical analysis. Thus, the coin may continue its decline as sellers aim for the ultimate support level of the Murrey Math Lines at $75,000. A rise above the key support and resistance pivot point at $100,000 would invalidate the bearish outlook for Bitcoin.
