BlackRock Invests in Bitcoin: A Catalyst for Market Recovery

BlackRock’s Bitcoin ETF purchased $38.2 million worth of BTC amid recent market rallies. Despite recent price declines, BTC has shown resilience and is projected to reach $126,612. The cryptocurrency benefits from regulatory optimism and lower inflation, potentially leading to a recovery in values.

On April 15, BlackRock’s Bitcoin ETF, IBIT, acquired $38.2 million in Bitcoin (BTC), following a previous purchase of $36.7 million on April 14. These acquisitions coincided with an 8.8% rally in BTC’s price over the two days. The world’s largest asset manager’s involvement is a significant development in the cryptocurrency market.

Following a market crash that saw Bitcoin’s price dip below $75,000 earlier this month, the cryptocurrency’s recovery was influenced by the US President’s announcement of a 90-day tariff pause on all nations except China. This announcement provided a catalyst for BTC’s subsequent price resurgence.

As of now, BTC has experienced a slight decline, down 1.7% on daily charts and 0.9% on 14-day charts. Yet, it remains positive with an 8.8% increase weekly, 0.9% monthly, and an impressive 34.2% surge since April 2024. BlackRock’s substantial investments played a key role in this recovery.

Additionally, the US Senate’s confirmation of Paul Atkins as the new SEC chair has sparked optimism among crypto investors. Expectations are high that Atkins may adopt a more lenient stance towards cryptocurrency regulations. Coupled with lower-than-anticipated inflation in the US, which may lead to an interest rate cut by the Federal Reserve, the outlook for BTC appears increasingly favourable.

Bitcoin previously reached an all-time high of $108,786 on January 19 but has since declined by approximately 23%. Despite ongoing global economic uncertainties, BTC has exhibited remarkable resilience. Analysts from CoinCodex estimate that BTC could ascend to $126,612 by April 25, translating to a 50.69% increase from its current valuation. However, they predict a potential correction to below $100,000 by the end of May.