Bloomberg analysts: Underestimating early Bitcoin holder selling pressure impacts the market; ETFs fail to effectively reduce volatility.

PANews reported on February 7th that Eric Balchunas, a senior ETF analyst at Bloomberg, published an article on the X platform reflecting on his assessment of the Bitcoin ETF's funding structure. He stated that his previous judgment that the investor structure of Bitcoin ETFs would be stronger than market expectations remains largely valid, but his earlier prediction that ETF funds would reduce market volatility has proven incorrect. Balchunas explained that he initially believed ETF retail funds would replace the highly speculative retail investors predating the FTX incident, thereby improving market stability. However, he failed to fully consider the selling pressure from early holders (OGs) concentrating their selling at high prices. He also pointed out that Bitcoin's approximately 450% increase in two years is itself a potential risk signal, as rapid price increases are often accompanied by high volatility. Therefore, Bitcoin's high-volatility, high-risk asset characteristics will continue in the foreseeable future.