As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed my fair share of market volatility and crashes. The events of Monday, August 5th, 2024, were no exception. The crypto crash was severe, but what truly caught my attention was the unwavering stance of institutional players like BlackRock.
In the annals of cryptocurrency, August 1st, 2024, stands out as a significant day marked by a dramatic drop in prices. This event has been referred to as a “blood Monday” due to the massive decline observed not only in the crypto sector but also across the broader financial market.
In contrast to numerous investors who sold off their digital assets like Bitcoin due to a price drop, prompting them to press the ‘sell’ button, BlackRock (IBIT) chose not to join the selling trend and maintained its investment in Bitcoin as part of its portfolio.
BlackRock’s unwavering stance
According to Eric Balchunas, Bloomberg Senior ETF analyst, BlackRock’s choice not to sell demonstrates their firm resolve. It’s worth noting that BlackRock had experienced an 8% decrease in the previous week and was still recovering from this loss before the market crash on Monday took place.
On Monday, IBIT investors awoke to a 14% drop over the weekend, following a 8% decrease in the previous week. Yet, they took no action whatsoever, as there were zero inflows. These seasoned investors, like the Rock of Gibraltar, stood firm compared to some risk-takers. You’re fortunate to have them in your midst.
— Eric Balchunas (@EricBalchunas) August 6, 2024
On Monday, BlackRock’s investors experienced another dip (-14%), following the weekend’s turbulence that resulted in a 8% loss. Remarkably, despite these setbacks, there was no change in the flow of investments from these investors.
As a seasoned investor with over two decades of experience in the financial markets, I have witnessed many ups and downs, bull runs, and bear markets. However, the recent trend in the crypto market has left me utterly shocked and bewildered. The massive outflows from Grayscale’s flagship product (GBTC) totaling $168 million, which represents just 0.3% of the total assets under management, is a stark reminder of the volatility that characterizes this nascent asset class.
Balchunis questioned, “Even I am taken aback by the holding power of the baby boomers and equally astounded by their weakness among the younger generations. It’s remarkable that ETFs are pouring in $17 billion now, yet you can’t seem to relax?”
Michael Saylor preaches belief in Bitcoin
On Monday, as the market price for Bitcoin continued to drop, Michael Saylor – chairman and co-founder of MicroStrategy – offered comfort to the community. Encouraging everyone to stay positive about Bitcoin amid its volatile price fluctuations, Saylor reaffirmed his optimistic view towards this digital currency. Known for his bullish stance on Bitcoin, Saylor has consistently maintained a confident outlook on this digital asset.
As an analyst, I share Peter Brandt’s optimism about Bitcoin reaching his projected $90,000 mark, despite the recent price correction. Currently, Bitcoin is on an upward trajectory, having risen by 6.12% to $56,238.09 at the time of writing.
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2024-08-06 19:05