Bitcoin’s Era Of God Candles Is Over, Bloomberg Analyst Warns

As investors scan the horizon for early signals of a Bitcoin rally to $1 million, Bloomberg analyst Eric Balchunas has predicted that God candles will become a rarity. While price spikes will be few and far between, Balchunas noted that ETFs and corporate adoption will eliminate vomit-inducing drawdowns for the largest cryptocurrency.

No More Bitcoin God Candles, Says Eric Balchunas

Eric Balchunas has forecasted the end of sudden price spurts for Bitcoin in the future, noting that the approval of spot ETFs is a watershed moment for the asset. Balchunas disclosed his position via an X post, noting that while Bitcoin is up 250% since BlackRock’s IBIT, the rally has less volatility and deep corrections.

He argued that the lower volatility has attracted larger institutional players, a key element in the climb to seven figures. Eric Balchunas added that steadying prices offers Bitcoin its best chance to operate as a currency rather than a narrow focus as an investment asset class.

However, the Bloomberg analyst revealed that as wild price swings become less common, traders will not have the upside of God candles. Typically, God candles refer to a massive green candle on price charts that surges for a short time, driven by high volume.

Before the SEC’s approval of spot Bitcoin ETFs, BTC rode the waves of double-digit percentage rallies and drawdowns. However, the recent Galaxy Digital’s 80,000 Bitcoin sale did not send asset prices tumbling down, while heavy institutional buying leaves prices ranging between $116,000 and $120,000.

“You could almost divide bitcoin’s history into two eras: BE and AE. Before ETF and After ETF,” said Balchunas. “This will be increasingly obvious the more time passes too IMO.”

Experts Tip ETFs To Drive Prices Higher

While volatility has slowed down since the launch of spot ETFs, experts are predicting steady inflows to push Bitcoin prices even higher. Citigroup analysts predict that Bitcoin will reach $199,000 before the end of the year in a rally driven primarily by ETF inflows.

At the core of their analysis is BlackRock’s IBIT surging to $100 billion in assets under management (AUM). Citigroup’s report noted that since each $1 billion in ETF inflow adds 3.6% to the asset’s price, a steady trend of institutional capital will send prices soaring.

Furthermore, Bitcoin treasury companies accumulating the top cryptocurrency are poised to drive prices to new highs. However, Scott Melker opined that the influx of institutional players to the scene has triggered early Bitcoin whales to exit their positions.