ETF Analyst: Bitcoin’s 17‑Year Resilience Undercuts Tulip‑Bubble Claim
Eric Balchunas, a senior ETF analyst at Bloomberg, argues that Bitcoin (BTC) should not be compared to the 17th‑century tulip mania given its roughly 17 years of continuous existence and repeated recoveries. Balchunas notes BTC has survived six to seven major crashes, multiple halving events, regulatory pressures, exchange failures and geopolitical shocks, yet has repeatedly bounced back to new all‑time highs. Bloomberg data cited shows Bitcoin rose about 122% in 2024 and roughly 250% over three years. Balchunas rejects the charge that Bitcoin is worthless because it is “unproductive,” noting many valuable stores of value (gold, art) do not produce cash flows. Supportive voices such as Garry Krug of Aifinyo point to ETF inflows and growing institutional assets under management as evidence of adoption and structural depth that distinguish BTC from a short‑lived commodity frenzy. Critics including Michael Burry and Jamie Dimon continue to liken Bitcoin to tulips, emphasizing volatility and non‑productivity, but Balchunas and allies say these comparisons ignore Bitcoin’s global infrastructure, multi‑cycle survivability and institutional backing. For traders: the story underscores Bitcoin’s documented resilience through multiple cycles, strong recent gains and expanding ETF-driven institutional adoption — factors that can support medium‑ to long‑term demand — while also reminding traders to monitor persistent volatility, vocal skeptics and regulatory shifts that can drive short‑term price swings.
Bullish
The coverage highlights factors that are generally supportive for Bitcoin’s price: demonstrable multi‑cycle recoveries, strong recent returns (122% in 2024; ~250% over three years), and growing institutional adoption via ETFs and AUM inflows. These strengthen demand-side fundamentals and reduce the potency of simplistic bubble narratives. For traders, this news is likely to be bullish for medium- to long-term BTC sentiment because it frames BTC as an asset with increasing structural demand and resilience. In the short term, however, the article also reinforces the presence of high volatility and public criticism (Michael Burry, Jamie Dimon), and it flags regulatory and exchange risks — all of which can trigger rapid downside moves. Therefore: expect continued bullish bias in market positioning and flows, especially among institutional and ETF-related demand, but remain prepared for sharp short-term corrections driven by headlines, policy changes or liquidation events.