Saylor, ETF Investors’ ‘Stronger Hands’ Help Stabilize Bitcoin — Analyst

Saylor, ETF Investors’ ‘Stronger Hands’ Help Stabilize Bitcoin — Analyst

Bitcoin's price has shown remarkable resilience in the face of ongoing macroeconomic uncertainty, and analysts are crediting the growing presence of long-term holders — particularly spot Bitcoin ETF investors and Michael Saylor’s MicroStrategy — as a major stabilizing force in the market.

According to Eric Balchunas, a senior ETF analyst at Bloomberg, these investors have “stronger hands” and are less likely to sell during periods of market stress. In an April 16 post on X, Balchunas noted that spot Bitcoin ETFs have absorbed significant sell pressure from “tourists,” FTX-related sellers, GBTC arbitragers, legal asset unlocks, and even government-seized coins.

“The ETFs and Saylor have been buying up all ‘dumps’ from the tourists, FTX refugees, GBTC discounters, legal unlocks, govt confiscations and Lord knows who else,” Balchunas said.

ETF Flows Point to Growing Confidence

Over the past 30 days, spot Bitcoin ETFs have seen net inflows of $131.04 million and have accumulated $2.4 billion in assets since the beginning of 2024. Balchunas described this performance as “impressive,” especially considering the volatile economic backdrop.

As of April 16, Bitcoin ETFs saw a total of $131.04 million in inflows over the past 30 days. Source: Eric Balchunas

He added that the nature of these investors — who tend to hold rather than trade — is helping support Bitcoin's price stability.

“Its owners are more stable... Bitcoin ETF investors have much stronger hands than most people think. This should help reduce volatility and correlation in the long run.”

Saylor’s Ongoing Accumulation

Complementing the ETF buying spree is Michael Saylor’s firm, MicroStrategy, which continues to aggressively accumulate Bitcoin. On April 14, the firm purchased 3,459 BTC for $285.5 million, at an average price of $82,618 per coin. According to data from Saylor Tracker, MicroStrategy now holds 531,644 BTC, cementing its position as one of the world’s largest corporate holders of Bitcoin.

Bitcoin Volatility Remains Low

Despite swings in the broader financial markets, Bitcoin’s price has remained relatively stable, ranging between $75,000 and $88,000 over the past month. The Bitcoin Volatility Index currently sits at 1.80%, according to Bitbo — a low figure given recent geopolitical and economic developments, including U.S. tariff announcements and uncertainty surrounding interest rates.

Bitcoin is trading at $84,610 at the time of publication. Source: CoinMarketCap

At the time of writing, Bitcoin trades at $84,610, significantly above its previous all-time high of $73,679, first broken in November.

Market Observers Take Notice

Bitcoin’s resilience has caught the attention of even its former critics. Dividend Hero, a popular financial commentator with over 200,000 followers on X, remarked on April 5:

“I’ve hated on Bitcoin in the past, but seeing it not tank while the stock market does is very interesting to me.”

As Bitcoin continues to find support among institutional investors and ETF participants, analysts suggest its days of wild volatility may be slowly fading. If current holding patterns persist, the crypto asset could continue to decouple from broader market swings and cement its reputation as digital gold.