Ledger co-founder Eric Larchevêque stated that Bitcoin is not a path to quick wealth but a way to protect the 'fruit' of one’s work in a world where bank deposits, gold custody, and fiat savings depend on third parties. In an interview with 'When Shift Happens' on June 25, Larchevêque explained that his conviction in Bitcoin was shaped by early experiences with the traditional financial system, including losing access to funds after a Latvian bank failed and being denied physical access to gold bars held through a Luxembourg bank.

Larchevêque argued that bank balances are ultimately claims on institutions, while Bitcoin held in self-custody is a final asset. He began moving heavily into Bitcoin around 2014, eventually placing almost all of his liquid net worth into the asset. He noted that he does not measure his wealth in euros but in the number of Bitcoins he owns.

Self-Custody and Security Risks

Larchevêque said Ledger was built to help users secure crypto assets, but he added that self-custody requires personal responsibility. He warned investors never to share their 24-word recovery phrase and advised large holders to avoid keeping direct access to their full holdings at home.

He also discussed the kidnapping of Ledger co-founder David Balland, who was tortured while criminals demanded a €10 million Bitcoin ransom from Larchevêque. The incident, he said, showed that physical security has become a major issue for visible crypto holders, especially in France.

Long-Term Investment Strategy

Despite Bitcoin’s volatility, Larchevêque said the only workable strategy is long-term conviction. He advised ordinary investors not to copy his all-in approach but instead to build a disciplined Bitcoin strategy through regular accumulation and only with money they do not need for daily life.

"The only people I know who had success with Bitcoin investment are the ones who forgot about it," he said.

Bitcoin (BTC) price is attempting a recovery, rising for four consecutive days to reach $62,615, its highest point since June 23. This represents an 8.7% increase from its lowest point this month. The rebound comes as investors buy the dip following a drop of over 50% from its all-time high, even as exchange-traded funds (ETF) experience significant outflows.

ETF Outflows and Market Rotation

Despite the price recovery, data suggests American investors have been selling assets in recent months. Inflows jumped to $4.5 billion last month, marking the worst monthly performance since ETFs were approved in 2024. SoSoValue data shows inflows rose by $221 million on Thursday, ending a ten-day period of sustained outflows.

One potential reason for the outflows is a rotation from the crypto industry to the booming stock market. Top US stock indices have recently jumped to record highs, with ETF inflows surging. The Vanguard S&P 500 ETF (VOO) added over $90 billion in assets this year and crossed the $1 trillion mark. Investors in Japan and South Korea have also rotated from crypto to stocks, with companies like Kioxia, SK Hynix, and Samsung more than doubling this year.

Risks from Strategy Holdings

Bitcoin faces a major risk from Strategy (MSTR), which hinted it will start selling its Bitcoin holdings in the near term to boost cash reserves. This is significant because a previous decision to sell 32 coins in early June pushed Bitcoin below $60,000. If Strategy starts selling, it could trigger a reversal and encourage other Bitcoin treasury companies to sell their holdings.

Technical Analysis and Downside Risks

The daily chart shows BTC price has bounced back modestly from the year-to-date low of $57,828 to $62,823. However, it remains below the 50-day and 100-day moving averages, suggesting bears are still in control. The coin is likely in the handle section of an inverted cup-and-handle pattern. A drop below the support of $58,000 could point to further downside, potentially to $50,000.