BlackRock Boosts Bitcoin Trust with Record 6,495 BTC Acquisition

• BlackRock’s iShares Bitcoin Trust bought 6,495 BTC from Coinbase Prime, raising its total Bitcoin holdings to $1.59 billion amid crypto market volatility.

• Grayscale experienced $505 million outflows but offset it with $396 million in new ETF inflows, affecting overall market sentiment.

 BlackRock’s iShares Bitcoin Trust has successfully acquired 6,495 Bitcoin (BTC) from Coinbase Prime, according to a tweet on X by Lookonchain. This acquisition has propelled the trust’s total Bitcoin holdings to 39,925 BTC, with an estimated market value of $1.59 billion. Meanwhile, the cryptocurrency market faces ongoing volatility, with Bitcoin experiencing fluctuations.

iShares Bitcoin Trust (#BlackRock) received 6,495 $BTC($254.7M) from #CoinbasePrime 7 hours ago and currently holds 39,925 $BTC($1.59B).https://t.co/R9FeDo2R0R pic.twitter.com/m89loTCWpj

— Lookonchain (@lookonchain) January 24, 2024

While BlackRock’s iShares Bitcoin Trust continues to grow, Grayscale, a prominent player in the cryptocurrency industry, has reported substantial outflows of funds. These outflows amounted to approximately $505 million in a recent period. However, it’s worth noting that Grayscale also observed inflows into newer exchange-traded funds (ETFs), which partially offset the outflows, totaling around $396 million.

Bitcoin’s Volatility and ETF Impact

Due to market dynamics, industry experts, including Jurrien Timmer, Executive Director of Fidelity, predict continued volatility in the price of Bitcoin. A key turning point in the development of cryptocurrencies is the U.S. Securities and Exchange Commission’s (SEC) recent approval of Bitcoin ETFs. However, the market is now more volatile due to this clearance. As a result, the direction of Bitcoin’s value in the future is strongly correlated with these ETFs’ performance.

In an interview with Yahoo Finance, Rachel Aguirre, the U.S. Head of BlackRock’s iShares Products, emphasized the remarkable success of the iShares Bitcoin Trust ETF shortly after its launch. After just two weeks of trade, the ETF saw a sharp increase in trading volume, reaching a significant $3 billion. This accomplishment attests to its instantaneous influence on the market.

The introduction of the iShares Bitcoin Trust ETF has been very successful in trading volume and drawing investors’ interest. Over $1.6 billion has flowed into the fund, demonstrating investors’ increasing interest in cryptocurrency-related items.

Aguirre highlighted BlackRock’s commitment to providing easy access to Bitcoin, and the iShares Bitcoin Trust ETF is a prime example of this strategy. BlackRock further underscores its confidence in the cryptocurrency market by backing the ETF with a significant holding of 16,361 BTC.

Bitcoin’s Resilience Amidst Market Fluctuations

Since the introduction of U.S.-based Bitcoin ETFs, such as BlackRock’s iShares Bitcoin Trust, the cryptocurrency has shown incredible resilience in the face of market swings. Recently, there was a slight increase in the value of cryptocurrencies, temporarily reaching $40,527. Based on the charts of Bitcoin, this performance fits a possible bullish pattern that points to a surge to $42,000 if the current trends continue.

Prior to the’ sell-the-news’ event, which is a typical occurrence in the cryptocurrency market, there was a speculative increase in price, which was followed by a little decline. But in comparison to earlier corrections, the recent decline from the peak of $49,021 of almost 20% is quite small. This signifies an increasing level of stability and maturity within the Bitcoin market.

Applying Elliott’s wave theory, market analysts suggest that Bitcoin may establish a stable base in the $36,000 to $38,000 range, setting the stage for a potential future surge. This theory, combined with historical data, implies that price declines in Bitcoin are often followed by notable upward trends, presenting potential opportunities for investors.