Bitcoin Price Today Tested by Wall Street Skepticism, Vanguard Likens Bitcoin to Digital Collectibles After a senior executive at Vanguard, one of the biggest asset managers in the world, compared Bitcoin to a viral collectible whose value is determined more by trends than fundamentals, the price of the cryptocurrency has once again come under examination.
This situation highlights an important point for investors: institutional adoption of crypto is growing, but long-term conviction in its value has not yet been fully established.
Bitcoin Not Yet a Long-Term Investment
At the Bloomberg ETFs in Depth conference in New York, John Ameriks, Global Head of Quantitative Equity at Vanguard, called Bitcoin a digital Labubu referring to the viral collectible doll whose price has soared due to hype.
It’s hard for me to view Bitcoin as anything more than a digital Labubu
According to Ameriks, Bitcoin lacks the key characteristics Vanguard looks for in a long-term investment, such as cash flow and the ability to create sustainable value. From this perspective, the Bitcoin price today is considered to reflect market sentiment rather than real economic value.
He also believes that to date, there is no strong evidence that blockchain technology, particularly in the context of Bitcoin, is capable of generating stable and lasting economic benefits.
Scarcity Narrative vs Economic Fundamentals
Vanguard’s criticism revives the classic comparison between Bitcoin and past speculative bubbles, such as the 17th-century tulip mania or the Beanie Babies of the 1990s. In this analogy, the rise in the Bitcoin price today is seen as driven more by the scarcity narrative and market psychology, rather than by fundamentals such as income or productivity.
While Bitcoin proponents consider this asset digital gold conservative institutions like Vanguard are still waiting for evidence that this claim can be tested across various economic cycles.
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Volatility Remains a Major Problem
Pressure on the Bitcoin price today is also exacerbated by high volatility. Bitcoin has fallen to around US$90,000 after previously reaching a peak above US$126,000 in October, a decline of around 28.6% in a relatively short period.
These sharp fluctuations reinforce the view that Bitcoin remains more of a speculative asset than a stable store of value, especially for institutional investors with a long-term horizon.
Why Does Vanguard Remain Open to Crypto ETFs?
Despite skepticism, Vanguard now allows its clients to trade crypto-based ETFs and mutual funds. This decision was made after the official launch of the Bitcoin spot ETF in January 2024 and its track record of performance was established.
Currently, Vanguard clients can trade products containing Bitcoin, Ethereum, XRP, and Solana, placing crypto on par with other alternative assets such as gold. With approximately US$12 trillion in assets under management, Vanguard cannot ignore the significant market interest in today’s Bitcoin price movements.
Access Open, But No Recommendations
Ameriks emphasizes that Vanguard only provides access, not investment advice. Clients are free to buy or sell crypto ETFs, but Vanguard will not provide guidance on whether Bitcoin is worth buying or holding.
This approach emphasizes a neutral position: crypto is recognized as an instrument in demand in the market, but has not yet been legitimized as a core asset. In this context, the fluctuations in Bitcoin price today are not enough to change Vanguard’s investment philosophy.
Bitcoin Still Needs to Prove Itself
Ameriks acknowledges that Bitcoin has the potential to demonstrate value under certain conditions, such as high inflation or political instability. However, he believes Bitcoin’s history is still too short to draw strong conclusions.
Without a consistent performance pattern in such extreme situations, Bitcoin price today is still seen as a financial experiment that has not yet fully matured.
With Bitcoin price today continuing to fluctuate amid mixed signals from large institutions, investors need to be rational. If interested in entering crypto, ensure your decision is based on risk management, long-term goals, and in-depth understanding, not just trends or fleeting euphoria. Monitor price movements, avoid FOMO, and adjust your crypto exposure to your risk profile.
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