Crypto

Black Rock: Changing the Crypto Game

Mrali9t7 2024. 2. 18. 00:56

The Rise of Black Rock

Black Rock, a prominent financial institution, has made waves in the cryptocurrency world with its recent actions. Their strategic moves have not only revolutionized the industry but have also garnered both admiration and animosity from various quarters. In this blog, we will delve into the impact of Black Rock's actions on the crypto market and explore the charts and trends that are affecting Bitcoin and other altcoins.

The Influence on Bitcoin and Altcoins

Whether you are already invested in Bitcoin or other altcoins, it is important to understand how Black Rock's activities can affect your investments. By accumulating a staggering amount of Bitcoin, Black Rock has signaled a bullish sentiment in the market. Despite minor fluctuations, the overall trend remains positive, which is good news for traders and investors alike.

When analyzing the charts, it becomes evident that Black Rock's inflows have been significant. In just one month, they managed to accumulate around 116,000 Bitcoin, totaling a staggering $6 billion. These numbers surpass even MicroStrategy's holdings, making Black Rock a formidable player in the crypto space.

Furthermore, the daily inflows continue to be strong, ranging from 4,000 to 6,000 Bitcoin per day. The impact of these massive inflows is evident in the market, as Black Rock's presence contributes to the upward momentum of Bitcoin's price.

The Role of OTC Desks

Some individuals have questioned why the prices of Bitcoin did not immediately reflect the inflows from ETFs. The explanation lies in the utilization of Over-the-Counter (OTC) desks. These platforms, such as Coinbase, facilitate direct transactions between parties without affecting the open market. Consequently, the absence of significant price swings can be attributed to OTC buying and selling.

While some may view this as a negative aspect, it is important to note that the availability of Bitcoin on exchanges is limited. In fact, the remaining Bitcoin supply is estimated to be around 19.63% million, accounting for only 5-7% of the total supply. Given these figures, it is clear why ETFs are forced to acquire Bitcoin from the open market.

Bankers' Interest in Cryptocurrency

Black Rock's activity in the crypto market has not gone unnoticed by traditional financial institutions. Companies like Black Rock and Fidelity have been accumulating Bitcoin at an unprecedented rate, which has sparked interest among banks. These banks are now seeking avenues to engage with digital assets, primarily due to the scarcity of OTC Bitcoin and the potential for high profits.

While the inflows from institutions like Black Rock may seem substantial, it is important to remember that their assets under management (AUM) are relatively small compared to the total market capitalization. However, as the price of Bitcoin continues to rise, these institutions stand to benefit greatly, as the fees they generate are directly tied to the performance of the market.

Timing and Cycles

Examining the historical cycles of Bitcoin reveals interesting patterns. The time between significant market bottoms and all-time highs has consistently been around 364-365 days. With this knowledge, it becomes crucial to pay attention to upcoming dates that could potentially impact the market. One such date worth considering is the 22nd of October, 2025, as it marks approximately 164 days from the previous all-time high.

While it is impossible to predict market movements with certainty, understanding the cyclic nature of Bitcoin can be helpful in determining when to sell. It is advisable to consider both time periods and prices when making investment decisions, particularly during periods of increased institutional demand.

Seizing the Opportunity

Given the current landscape, it is crucial to seize opportunities that arise from potential market downturns. Genesis recently received approval to sell a significant amount of GBTC (Grayscale Bitcoin Trust), which has resulted in increased selling pressure. However, it is important to view these situations as temporary, akin to being offered a refreshing drink in the desert.

While concerns about potential market manipulation are valid, it is essential to recognize the scarcity of available Bitcoin. In such circumstances, any price discount or downturn should be seen as an opportunity to accumulate more Bitcoin before institutional FOMO (Fear of Missing Out) intensifies, and the Federal Reserve potentially lowers interest rates.

The Importance of Taking Profits

As the market moves towards a potential $100,000 Bitcoin price, it is crucial to consider taking profits. While it may seem counterintuitive to sell in the midst of a bull run, the substantial returns can be life-changing. Allocating profits to both Bitcoin and altcoins can help safeguard investments while still participating in the potential upside.

While the exact timing and extent of profit-taking may vary for each individual, it is advisable to closely monitor the market and adjust investment strategies accordingly. With the current cycle presenting a unique opportunity, making sound financial decisions can set individuals up for life-changing outcomes.

Conclusion

Black Rock's entry into the cryptocurrency market has disrupted the status quo. Through their significant Bitcoin accumulations, they have reshaped the industry and left an indelible mark. The scarcity of available Bitcoin, coupled with institutional demand, has created a bullish environment that investors can benefit from. By understanding the cycles, timing, and potential market opportunities, individuals can navigate the crypto landscape and make informed decisions that align with their financial goals.