Experts disagree on the cause of Bitcoin's sharp decline: interpretations of ETF fund outflows vary.

Source: BlockMedia Original Title: El-Erian “Bitcoin's sharp decline is due to short-term speculative fund outflows”… Interpretations diverge regarding ETF fund outflows. Original Link: https://www.blockmedia.co.kr/archives/1011661 Mohamed El-Erian, Chief Economic Adviser at Allianz, diagnosed that the recent decline of Bitcoin ( BTC ) is due to the exit of 'tourist investors (.' In response, some experts have raised objections, claiming that this is an excessive interpretation, revealing a disparity in market interpretation.

El-Erian stated in a CNBC interview that “the investment structure of Bitcoin is still inverted pyramid-like, where short-term speculative forces dominate the top despite the increasing proportion of long-term holders,” and that “the recent decline is due to the mass exodus of these short-term investors.” He particularly cited the large outflow of funds from the iShares Bitcoin Trust ETF)IBIT( as evidence.

The IBIT mentioned by El-Erian is one of the largest Bitcoin spot ETFs in the world, with approximately $2.27 billion), or about 3 trillion won(, in net outflows in November. This contrasts with the net inflow of $3.93 billion recorded in October. He pointed out that this trend demonstrates the weak demand structure for Bitcoin.

However, Eric Balchunas, an ETF analyst at Bloomberg, rebutted this by saying, “This is an exaggerated interpretation.” He pointed out that “the chart inaccurately includes October inflows, which could inadvertently provoke market anxiety.” He also added, “The outflow in November is less than 3% of the total assets under management of the fund, which does not indicate a market collapse at all.”

The Bitcoin market experienced a sharp decline after reaching an all-time high last month, dropping to around $81,000 at one point. In this process, it gave back most of the gains made since the beginning of the year, and in November, a total of $3.57 billion), approximately 4.76 trillion won(, was reported to have exited from the overall U.S. listed Bitcoin spot ETFs.

El-Erian himself has acknowledged the trial and error surrounding Bitcoin investments. In a 2021 interview, he reflected, “I bought Bitcoin during the 2018 cryptocurrency bear market but sold too early and couldn't maximize my profits.”

Meanwhile, Bitcoin rebounded on expectations of interest rate cuts, recovering to $90,000.