Bitcoin Persists Amid US Inflation Signals, Fueled by BlackRock's Institutional Investment
Summary:
On April 5, Bitcoin (BTC) disregarded US inflation indications amid renewed excitement about institutional investment. This followed news that BlackRock, the world's largest asset manager, was collaborating with top US banks, including Goldman Sachs and Citigroup, for its Bitcoin Exchange-Traded Fund (ETF). As a result, Bitcoin's price rose to $68,630 following the Wall Street opening. It continued to hover around $68,000 while maintaining its resistance to new US inflation signals.
April 5 saw Bitcoin (BTC) ignore indications of US inflation, with fresh enthusiasm over imminent institutional investment driving a buzz in the market. Records from Cointelegraph Markets Pro and TradingView illustrate that rejuvenated BTC price support propelled BTC/USD to a peak of $68,630 following the commencement of trading on Wall Street. Presently hovering around $68,000 area, Bitcoin seems to be rallying in line with revelations that BlackRock, the biggest asset manager globally, had enlisted top US banks as members for its on-the-spot Bitcoin exchange-traded fund (ETF). Goldman Sachs, Citadel, UBS, and Citigroup were some of the corporations listed in the documentation circulated online.
Eric Balchunas, a senior ETF analyst with Bloomberg Intelligence, tweeted that "mega firms are chasing a slice of the action, and willing to openly affiliate with the endeavor." Balchunas reasoned that the unfolding events were probably due to "the ETFs experiencing massive inflow/success." As reported by Cointelegraph, the newly-launched nine products, not including the assets in the Grayscale Bitcoin Trust (GBTC), held over 500,000 BTC on April 4.
The news concerning BlackRock appears to be shielding BTC price movement from the most recent US inflation hints, coming in the guise of higher-than-anticipated employment figures, which may provide the Federal Reserve with more leeway to maintain raised interest rates for an extended period. According to CME Group’s FedWatch Tool, projections for a rate reduction in 2024 have been deferred further towards the year's end. As of the time of writing, the likelihood of a June cut stands slightly above 50%, a 10% drop from earlier this week.
A well-known observer of the market, Daan Crypto Trades, remarked about the sell-side liquidity captured around the start. Bitcoin remains the center of present price movement, with selling pressure intensified beyond $69,000, as illustrated by CoinGlass data. "If BTC surpasses $69,000, predictions are out of the window," posited trader Jelle during his own analysis on X. Jelle observed that BTC/USD had managed to establish a higher low on hourly timelines, which could potentially prime the pair for continued upward progress.
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Published At
4/5/2024 6:41:35 PM
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