$0 Flows: BlackRock Unshaken Despite Recent Bitcoin Market Crash, Data Shows
07 August 2024 - 9:00PM
NEWSBTC
Bitcoin and the broader crypto market faced a notable price plunge
on Monday, with the global crypto market cap losing $100 billion in
valuation and total liquidations surpassing $1 billion.
Interestingly, despite this so-called ‘Red Monday,’ Eric Balchunas,
a Bloomberg Senior exchange-traded fund (ETF) analyst, revealed in
a post uploaded earlier today that investors of BlackRock’s crypto
fund, IBIT, maintained their holdings without flinching. Related
Reading: Bitcoin Rebounds Past $56,000, Ethereum Over $2,500: Key
Factors Unshaken By Market Meltdown According to Balchunas, during
this chaotic period whereby panic selling may be seen as the norm,
BlackRock investors particularly showcased a strong level of
resilience by not liquidating any portion of their cryptocurrency
holdings. What makes this more interesting is that these same
investors had already endured about an 8% loss the previous week
and were facing additional losses during the Bitcoin market crash.
Balchunas noted: Compared to some of these degens these boomers
[Blackrock investors] are like the Rock of Gibraltar. You
guys are so lucky to have them. Balchunas further reported that
although BlackRock registered a minor 0.3% total outflow from its
assets under management (AUM) during this period, it is relatively
small compared to the overall market movements. Interestingly, a
third of these outflows were attributed to Grayscale’s Bitcoin
Trust (GBTC), which faced challenges during the same period.
Furthermore, Balchunas speculated that although the immediate
reaction to the market downturn was more subdued than expected, the
week might still see more significant capital withdrawals,
potentially reaching the billions. Balchunas noted: I could see
some more outflows this week. I was thinking a couple billion would
leave, maybe 5%, which means 95% hung tough which would be strong.
So far tho looking much stronger than that. Even I’ve been
surprised by the HODL ability of the boomers and equally surprised
by the weakness of the natives. My lord you finally have ETFs here
bringing in $17b and you can’t just chill? Bitcoin Current Recovery
And Outlook Following the recent dip in Bitcoin comes a notable
recovery, which started earlier today. So far, Bitcoin has
increased to as high as $56,957 in the early hours of today before
retracing slightly to trade at $56,672, at the time of writing, up
by 3.6% in the past 24 hours. Related Reading: Bitcoin MVRV Lowest
Since FTX Crash, Signal To Buy? According to prominent crypto
analyst Ali, Bitcoin has formed a “rising wedge, a pattern often
linked to downtrends.” Ali projected that Bitcoin might surge to
“$56,000-$57,000 at the wedge’s upper boundary.” However, a
possible plunge to $51,000 should still be watched out for. In the
short term, #Bitcoin forms a rising wedge, a pattern often linked
to downtrends. Though $BTC might climb to $56,000-$57,000 at the
wedge’s upper boundary, watch for a potential breakdown that could
pull #BTC back to around $51,000! pic.twitter.com/qwBvwwHNnO — Ali
(@ali_charts) August 6, 2024 Featured image created with DALL-E,
Chart from TradingView
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