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The first Monday in August 2024 has gone down in cryptocurrency history as a notable day in terms of price crash. Some have even described it as a "red Monday" given the huge slump in the crypto space and the broader financial market.
Despite the price crash, which pushed many investors to hit the sell button on their digital assets, particularly Bitcoin, BlackRock (IBIT) did not see sell-offs as the asset manager held on to its portfolio investment in the world’s leading digital asset.
Yuri MolchanBlackRock's unwavering stance
As Eric Balchunas, Bloomberg Senior ETF analyst said, BlackRock’s decision not to sell speaks volumes of their unshaken stance. Notably, BlackRock had suffered an 8% decline in the outgone week and was reeling from that loss before the market crash of Monday occurred.
In the epic market movement on Monday, BlackRock’s investors again recorded a negative move (-14%) after weathering the weekend storm of an 8% loss. Nonetheless, these investors stood steadfast with zero flows.
Meanwhile, the total outflow for the group registered $168 million, which represents approximately 0.3% of the total assets under management (AUM). Noteworthy to state that Grayscale (GBTC) accounted for one-third of it. Balchunas predicted that this week will register more outflows up to the tune of billions or the equivalent of 5%. Overall, the renowned analyst has expressed shock at the reaction from some investors in the crypto market.
“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?” Balchunas queried.
Michael Saylor preaches belief in Bitcoin
While the downward market price movement persisted on Monday, Michael Saylor, the chairman and co-founder of MicroStrategy, sent out reassurance to members of the community. Saylor urged everyone to believe in Bitcoin despite price volatility. The Bitcoin enthusiast has consistently maintained a bullish stance on the digital asset.
Similarly, Peter Brandt, a legendary trader, remains optimistic that Bitcoin will still surge to his predicted $90,000 level after this price correction. At the time of writing, data shows Bitcoin has climbed by 6.12% to $56,238.09.
Arman Shirinyan
Alex Dovbnya
Vladislav Sopov
Dan Burgin
U.Today Editorial Team