Bitcoin ETF in Retracement: Balchunas Calls ‘Two Steps Forward, One Step Back’ Pattern in IBIT Fund Flows

COINOTAG News reported on November 4 that Bloomberg ETF analyst Eric Balchunas views the ascent of a Bitcoin ETF as a measured, non-linear process. He characterizes the trajectory as a persistent two steps forward, one step back cycle, with the instrument currently in a retracement phase. The pattern aligns with observed fund flows in the IBIT product, underscoring evolving ETF development and risk-reward dynamics in crypto-linked instruments.

Balchunas frames the volatility as intrinsic to ETF development, noting that daily inflows are unlikely to rise in a straight line. For investors, the takeaway is discipline: monitor liquidity signals and macro drivers, and view retracements as a natural component of a longer-term maturation cycle for crypto asset vehicles like Bitcoin ETF offerings.