Charles Schwab’s Ferraioli said roughly 20% of spot Bitcoin ETF assets come from Schwab clients and argued that Bitcoin remains attractive from a valuation perspective.
- Binance founder Changpeng Zhao said on Tuesday that Bitcoin will not be “dead for long” on Tuesday.
- Schwab’s Jim Ferraioli reportedly said Bitcoin’s annualized volatility has fallen to about 40 this cycle, down from 60 in the previous cycle and 80 in the previous cycle before.
- Santiment data showed wallets holding less than 0.01 BTC increased their holdings by 0.36% over the past two weeks, while wallets holding between 10 and 10,000 BTC reduced holdings by 0.20%.
Binance (BNB) founder Changpeng Zhao, known as CZ, reassured investors on Tuesday that Bitcoin (BTC) would not be “dead for long” following the latest bout of market weakness.
On X, CZ urged investors not to panic, writing that Bitcoin would not remain “dead” for long.
Bitcoin’s price was trading near $61,000 on Tuesday after falling sharply over recent sessions as risk assets came under pressure. On Stocktwits, the retail sentiment around BTC remained in the ‘bearish’ zone, while chatter around it stayed in the ‘high’ levels over the past day.
CZ’s comments came as industry participants gathered at the DACFP Crypto Convergence conference, where Charles Schwab’s Head of Crypto Research Jim Ferraioli outlined a more constructive long-term view for the asset class.
Bitcoin’s Long-Term Case Remains Intact
Bloomberg ETF analyst Eric Balchunas said that according to Schwab, Bitcoin’s annualized volatility has declined significantly over successive market cycles, falling to around 40 in the current cycle from 60 in the previous cycle and roughly 80 in the one before that.
He said the lower volatility reflects Bitcoin’s maturation as an asset, even as investor attention has increasingly shifted toward artificial intelligence and US equities.
The Schwab executive also reportedly revealed that approximately 20% of spot Bitcoin ETF assets originate from Schwab clients, highlighting continued institutional and retail participation despite recent market turbulence.
Ferraioli argued that Bitcoin remains relatively inexpensive compared with other asset classes from a valuation standpoint and suggested that periods of market weakness could offer attractive entry points for long-term investors.
He also outlined what he views as Bitcoin’s fundamental investment case, pointing to the imbalance between the growth of the global money supply and Bitcoin’s fixed supply. According to Ferraioli, investors who expect future expansions in liquidity and monetary stimulus are likely to remain constructive on digital assets.
“The U.S. debt is larger than the US economy,” Ferraioli said during the conference, adding that governments have historically relied on monetary inflation to help manage large debt burdens.
Retail Investors Buy The Dip As Whales Turn Cautious
While industry leaders remained optimistic, on-chain data suggested a divergence between retail and large-holder behavior.
According to blockchain analytics firm Santiment, wallets holding less than 0.01 BTC increased their collective holdings by 0.36% over the past two weeks, indicating that smaller investors continue treating market declines as buying opportunities.
In contrast, wallets holding between 10 and 10,000 BTC reduced their holdings by 0.20% during the same period, suggesting larger investors remain unconvinced that a sustained recovery is imminent.
Santiment noted that major market bottoms are often accompanied by capitulation from smaller investors, a pattern that has yet to emerge. The firm said the current divergence leaves retail investors carrying much of the market’s bullish conviction while larger holders remain on the sidelines.
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