In a move that shocked the crypto market, an unknown company rumored to be Larry Fink’s BlackRock has secretly amassed a staggering $3 billion worth of Bitcoin over the past three months. If confirmed, this would make the company the world’s third-largest Bitcoin holder and raise interesting questions about the motives behind this huge investment.
BlackRock’s Silent Bitcoin Accumulation
The mysterious Bitcoin accumulation that many suspect was orchestrated by Larry Fink and BlackRock has sparked controversy and speculation throughout the crypto community. It’s stirring up. Given that Bitcoin is currently facing bearish market sentiment due to price declines, with the RSI (Relative Strength Index) reaching levels not seen since the coronavirus-related crash of 2020, this move by companies is becoming even more interesting.
When Bitcoin’s daily RSI fell to such low levels in the past, it was often a good sign to buy. As a result of the past four similar RSI declines, the Bitcoin price has become affordable for smart investors to buy at $32,000, $25,000, $17,000, and $15,000, respectively.
Is it possible that this pattern repeats? This company, perhaps BlackRock, strategically accumulated Bitcoin, knowing that these market conditions often precede large price increases. I wonder if they do.
BlackRock and Bitcoin Spot ETF
To make matters worse, BlackRock, the world’s largest asset management company, recently filed for a Bitcoin Spot ETF (exchange traded fund). While this move represents a recognition of Bitcoin’s growing importance in traditional finance, it may be that companies accumulating Bitcoin have something to do with the impending launch of this ETF. There are also questions as to whether this is the case.
As Europe prepares to launch its first Bitcoin Spot ETF, it is important to remember that only 6.3% of the total Bitcoin supply remains on exchanges. With Bitcoin’s halving just eight months away, a significant supply shock is looming that could signal the beginning of a major bull market.
What happens next?
The next few months will undoubtedly be critical for Bitcoin and the broader crypto market. Historical trends suggest a new all-time high could be reached by October 2024, but no one can predict the future with certainty. However, the current Bitcoin accumulation by the mysterious company and BlackRock’s foray into the Bitcoin ETF space has piqued the interest of investors and analysts alike.