Bitcoin slipped below the $90,000 mark on Dec. 12, extending its pullback as a senior Vanguard executive compared the cryptocurrency to a “digital Labubu” and technical indicators flashed warning signs.
At the time of writing, Bitcoin was trading near $89,700, sharply lower than its year-to-date peak of $126,300. The decline came alongside a broader sell-off in U.S. equities, with both the Nasdaq 100 and the S&P 500 falling more than 1% amid renewed concerns over artificial intelligence-driven valuations.
The downturn in Bitcoin also followed comments from John Ameriks, a senior executive at Vanguard, who described the asset as a “digital Labubu.” Labubu, a plush toy produced by Pop Mart, experienced a rapid surge in popularity this year before demand faded just as quickly—a comparison Ameriks used to highlight what he sees as speculative excess.
According to Ameriks, Bitcoin lacks fundamental investment characteristics such as income generation, compounding returns, and cash-flow properties, making it inherently risky. Similar concerns have previously been raised by prominent investors, including Warren Buffett and the late Charlie Munger.
Ameriks’ remarks are notable given Vanguard’s recent decision to allow clients to access Bitcoin and other cryptocurrency ETFs on its platform. The asset management giant oversees more than $12 trillion in assets. Commenting on the policy, Ameriks said:
“We allow people to hold and buy these ETFs on our platform if they wish to do so, but they do so with discretion. We’re not going to give them advice as to whether to buy or sell or which crypto tokens they ought to hold.”
Despite enabling access, Vanguard has stopped short of launching its own crypto ETFs. This sets it apart from major rivals such as BlackRock, Invesco, and Franklin Templeton, all of which have entered the space. BlackRock’s iShares Bitcoin Trust (IBIT), for example, has become one of the firm’s most profitable funds, generating hundreds of millions of dollars in annual fee revenue.
Bitcoin price technicals point to a potential breakdown
From a technical perspective, Bitcoin’s daily chart continues to deteriorate. The price remains below the Supertrend indicator and has also slipped under the 50-day exponential moving average, both signals of weakening momentum.
More concerning for bulls, Bitcoin appears to be forming a bearish flag pattern – widely regarded as one of the more dangerous continuation patterns in technical analysis. If this structure plays out, selling pressure could intensify, with bears likely targeting the key support level around $75,000, aligned with the Murrey Math Lines.
The bearish outlook would be invalidated if Bitcoin manages to reclaim and hold above the major support-and-resistance pivot near $100,000. Until then, technical signals suggest downside risks remain elevated.
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