Bitcoin (BTC) landed back in Wall Street's credibility crosshairs this week after a senior Vanguard executive likened the cryptocurrency to a passing fad—specifically, a trendy plush toy.
Vanguard Doubles Down on Bitcoin Skepticism
John Ameriks, Vanguard Group's Global Head of Quantitative Equity, delivered some pointed remarks at Bloomberg's ETFs in Depth conference in New York on Thursday. His take? Bitcoin doesn't have what Vanguard looks for in long-term investments: income generation, compounding returns, or meaningful cash flow.
Ameriks compared Bitcoin to a "digital Labubu," referencing the viral plush toy collectible that's been making waves in certain circles. Without evidence that the underlying technology delivers lasting economic value, he argued, it's tough to see Bitcoin as anything more than speculation.
Platform Access Doesn't Mean Endorsement
Here's where things get interesting. Despite the harsh words, Vanguard recently started allowing clients to trade spot Bitcoin exchange-traded funds on its platform. So what gives?
Ameriks explained that the decision came after U.S. spot Bitcoin ETFs launched in January 2024 and established sufficient trading track records. But don't mistake access for approval. Vanguard has no intention of launching its own crypto-focused ETFs and won't offer guidance on whether clients should buy or sell digital assets.
Translation: you can do this if you want, but we're not recommending it.
The Case Remains Murky
To be fair, Ameriks acknowledged there might be limited scenarios where Bitcoin could demonstrate non-speculative value—think periods of high inflation or political instability. But he noted that a clearer investment thesis would require consistent price behavior during those conditions, and Bitcoin's relatively short history hasn't provided that yet.
A Vanguard spokesperson added that the firm remains optimistic about blockchain technology itself and its potential to improve market structure, even if they're not sold on Bitcoin as an investment.
Technical Picture Shows Stabilization After Sharp Drop
Bitcoin remains under short-term pressure but has found some footing after a steep decline from recent highs. The cryptocurrency rebounded near $85,000 earlier this month and has since formed higher lows, suggesting downside momentum may be easing.
Still, BTC continues trading below key moving averages. The 20-day EMA sits near $91,500, the 50-day EMA is around $96,400, and the 100-day EMA hovers near $101,700.
Critical Levels to Watch
Immediate support lies between $88,500 and $89,000, while major support remains at $85,000. On the upside, first resistance appears near $92,500, followed by a heavier supply zone between $96,000 and $98,000.
A break above $96,000 would signal a momentum shift back in favor of the bulls. A loss of $88,500, on the other hand, risks a quick retest of that $85,000 level—a psychological threshold traders are watching closely.