Chief Crypto Research Officer at Charles Schwab: The recent relatively weak performance of Bitcoin is partly due to funds being attracted to the AI sector and the U.S. stock market.

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According to a post on X by Eric Balchunas, a senior ETF analyst at Bloomberg, Jim Ferraioli, head of cryptocurrency research at Charles Schwab, said that although Bitcoin has recently undergone a bear-market correction, its volatility is continuing to decline. In this cycle, Bitcoin has become an asset with volatility of only about 40%, compared with roughly 60% in the previous cycle, and as high as 80% in the cycle before that. Part of the reason Bitcoin’s recent performance has been relatively weak is that funds are being drawn to the AI sector and the U.S. stock market, and strong momentum trading opportunities are diverting investors’ attention away from crypto assets.

Ferraioli also revealed that, at present, about 20% of the total assets in the U.S. spot Bitcoin ETF come from holdings by Charles Schwab clients, reflecting the continued involvement of traditional financial investors in Bitcoin ETF products.

BTC-2.4%
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GateUser-59fc535c
· 5h ago
Ferraioli highlights a key point: ETFs turn Bitcoin into an alternative asset allocation option, no longer just a fringe experiment.
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FeeFiFoFum
· 9h ago
From 80% to 40%, volatility halved— is this still the Bitcoin we know?
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GateUser-170ee8b1
· 9h ago
AI has absorbed too much liquidity; on the crypto side, we need to tell the story from a different perspective.
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TheMoonReflectsOnTheTranquil
· 9h ago
20% of Schwab clients is quite interesting—traditional funds are indeed quietly allocating, just not announcing it.
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OrdersPlacedBeforeTheStorm
· 9h ago
Volatility has decreased; institutionalization is indeed happening, but are retail investors still here?
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