BlackRock shows growing confidence in Bitcoin with the withdrawal of 11,500 Bitcoin from the market
The recent move by BlackRock, one of the largest global investment giants, is a prominent strategic move in the cryptocurrency market.
Last week, after receiving approvals for a Bitcoin ETF, the company made the decision to withdraw approximately 11,500 bitcoins from market supply, according to statements by Paweł Łaskarzewski, co-founder of Synapse.
BlackRock strengthens its position in the cryptocurrency market:
This move by BlackRock, which occurred in just two days, shows the company's confidence in the value of Bitcoin, especially in light of the extraction of about 900 new Bitcoins daily.
This is an important strategic shift, as BlackRock takes a buy-the-dip approach, reflecting strong confidence in the value of Bitcoin.
With this major move, BlackRock demonstrates an acceleration in the pace of institutional adoption of cryptocurrencies.
Examining the impact of BlackRock's iShares Bitcoin Trust (IBIT), it is noted that the fund has managed 25% of volume in just two days.
When taking into account the impact of GBTC, it is estimated that up to 46,000 Bitcoins have been withdrawn from the market, indicating a potential supply crunch.
The impact of the increasing consumption of Bitcoin by institutions:
Laskarzewski notes that sustainable daily consumption of around 23,000 bitcoins per day reflects a consumption rate of 25.56 times daily production, by US ETFs alone.
This figure does not include retail investors or other global ETFs, reflecting a potential severe supply crunch ahead.
This is achieved if institutional accumulation continues, which means that the market is on the cusp of a severe supply crisis.
Despite the potential for volatility in Bitcoin prices, the underlying scarcity of the asset is increasingly prominent, and despite concerns about the high fees associated with GBTC, the launch of a Bitcoin ETF is considered a major achievement.
In conclusion, Laskarzewski stressed that strategic moves by giant institutions such as BlackRock reinforce the growing role of Bitcoin in the traditional financial landscape.
BlackRock's significant withdrawal from its Bitcoin offering within a short period of time also highlights the accelerating pace of institutional adoption and signals the growing importance of Bitcoin in the broader financial sector.
Bitcoin's market dominance is declining as the coin's price struggles to cross the $43,000 mark
In the last 24-hour developments, Bitcoin (BTC) saw a slight rally but failed to reclaim the $43,000 level decisively.
On the other hand, altcoins showed unusually low volatility, with SOL recording an increase of approximately 3%, while TRX and LINK saw a similar decline.
Bitcoin's market influence declines:
The decline of Bitcoin's influence in the market is beginning to become clear.
A week ago, an SEC account was hacked, resulting in fake posts stating that the SEC had approved Bitcoin ETFs, leading to a temporary jump in prices.
But this increase faded when Gary Gensler, head of the SEC, confirmed that the news was fake.
However, a day later, the authority approved 11 such products, sending Bitcoin rising from $45,000 to nearly $48,000 before returning to its original point.
Volatility increased on Thursday with the launch of ETFs in US markets, as the cryptocurrency jumped to a 21-month high above $49,000.
But this rise did not last long, and the price fell by more than seven thousand dollars during the next 36 hours.
Since then, Bitcoin has been quietly moving around $43,000, without successfully crossing this barrier yet.
As a result of these moves, Bitcoin's market value remained around $840 billion, but its dominance over alternative digital currencies fell to 49.8% according to the CMC index, compared to more than 53% last week.
Relative stability in the prices of alternative digital currencies:
Although highly volatile, altcoins have also remained relatively flat over the past few days.
ETH, BNB, AVAX, DOGE, and DOT saw slight gains among large-cap altcoins, while XRP, ADA, and MATIC saw slight losses.
Solana and Toncoin are the ones that have benefited the most from this group of digital assets.
SOL rose 3% and settled above $97, while TON rose 5% and is trading above $2.4.
On the other hand, Tron and Chainlink both fell by approximately 3%.
The total cryptocurrency market capitalization has offset yesterday's losses of $10 billion, reaching $1.690 trillion according to CMC.
Bitcoin (BTC) Price Forecast: Are We on the Verge of a New Correction?
Recently, a report from Barchart revealed that the price of Bitcoin (BTC) fell below its 50-day moving average, which raises the question:
Are we heading for a price correction?
The 50-day moving average is a leading indicator in the cryptocurrency market, used to measure Bitcoin's trend in the short to medium term.
When Bitcoin trades above this level, it is usually interpreted as a sign of high market confidence and positive expectations.
On the other hand, trading below this level is considered an indicator of pessimism in the market, which reflects uncertainty among investors and the possibility of downward pressure on prices.
Currently, Bitcoin price stands at $42,703.32, with fluctuations ranging between $42,219.42 and $43,312.75 within 24 hours.
Despite falling from its recent highs, Bitcoin remains with a massive market capitalization of $836.98 billion, and a trading volume of $17.33 billion over the past 24 hours.
In addition, data from CryptoQuant.com provides in-depth insight into the global market.
This data shows contradictory market behavior, with a positive spread in the East Asia region and a negative spread in Coinbase.
This suggests that retail investors in South Korea are enthusiastically buying Bitcoin, increasing its price in the local market (the Korean premium), while US investors appear to be less enthusiastic, as evidenced by the negative Coinbase premium.
Historically, this pattern of divergence has usually preceded a short-term correction in the price of Bitcoin.
The increase in the Korean premium, which exceeded 3%, compared to the negative premium for “Coinbase”, shows a difference in market sentiment between different regions.
This is an indication of optimistic buying in one area, offset by cautious selling in another area, which may lead to an increase in volatility and the possibility of a price correction.
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