Better 52-Week-Low Buy: Bitcoin or the iShares Bitcoin Trust ETF?

Core Viewpoint - Bitcoin and the iShares Bitcoin Trust ETF are currently at 52-week lows, with Bitcoin experiencing a 40% drawdown from its all-time high in October 2025 [1] Group 1: Reasons for Bitcoin's Decline - Bitcoin's price is influenced by supply and demand factors, including liquidity, regulation, monetary policy, institutional adoption, and retail investor demand [2] - Recent economic events, geopolitical issues, and tariffs have put pressure on Bitcoin, leading to significant price drops, including declines of over 5% in 24 hours and over 10% in 10 days [2] - Rapid price changes can occur due to collective buying or selling pressure, particularly during liquidity events [3] Group 2: Impact of Leverage on Bitcoin Trading - Some investors utilize leverage to buy Bitcoin, which can amplify both gains and losses, leading to forced liquidations if balances fall below maintenance margins [4] - Collective forced selling due to leverage can trigger rapid declines in asset prices, similar to past market events like the COVID-19 pandemic's impact on the S&P 500 [5] Group 3: Investment Considerations for Bitcoin - Unlike traditional investments, Bitcoin lacks earnings and management, making its investment thesis reliant on intrinsic value and adoption by various investors and institutions [6] - Investors should ensure they are buying Bitcoin for the right reasons, as it has historically provided wealth to long-term investors amid extreme volatility [7]