Charles Schwab Says Bitcoin Weakness Stems From Fading Momentum, Not Saylor Selling
Summary
- A Charles Schwab analyst said recent Bitcoin weakness stems from fading market momentum, not Saylor selling.
- He said Bitcoin rebounded after the launch of spot ETFs, but the move failed to trigger the kind of broad speculative frenzy seen in prior cycles, and that momentum has now faded.
- He also said speculative capital that once flowed into the crypto market has shifted to gold, AI-related stocks and the IPO market, and stressed that Bitcoin’s biggest challenge is a lack of upside momentum.
Forecast Trend Report by Period
Charles Schwab said Bitcoin’s recent weakness is being driven by fading market momentum rather than selling by Michael Saylor. Investors are increasingly watching shifts in capital flows across the crypto market.
CoinDesk reported on June 3 that Charles Schwab analyst Jim Ferraioli said Bitcoin’s recent softness was not caused by Saylor, but by a loss of upside momentum.
Bitcoin had been trending weaker since October of last year and bottomed in early February, he said. It later rebounded after major Wall Street firms launched spot ETFs, but unlike in previous cycles, the rally did not turn into a broad speculative frenzy.
Crypto investors tend to follow momentum more than fundamentals, Ferraioli said. In the current market, that momentum has disappeared.
He added that speculative money that previously flowed into crypto has been moving to other assets, including gold, artificial intelligence-related stocks and the initial public offering market.
Ferraioli also downplayed the market impact of Strategy’s recent Bitcoin sale, saying its effect had been overstated and that he did not view the transaction as a key market driver.
The biggest challenge facing Bitcoin right now is not Saylor, regulation or macroeconomic conditions, but the lack of upward momentum in the market, he said.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
