Arkham statistics indicate that top asset giant BlackRock purchased $3.85 billion of Bitcoin (BTC) in June alone.
This action affirms BlackRock's strong belief in this cryptocurrency and hints at an increase in institutions’ interest in the digital currency.
Many traders and investors see this as a strong sign that traditional finance is merging with crypto at a faster pace than expected. The data shows multiple large transfers from Coinbase Prime wallets to BlackRock's IBIT Bitcoin wallets.
Individual transactions ranged from $5 million to over $90 million. Each of BlackRock’s BTC purchases shows its gradual acquisition strategy.
Such purchases in low quantities over prolonged periods ensure that the company does not crowd demand, and price fluctuations are minimal. The method provides insight into how large players can hedge risk when purchasing similar assets.
BlackRock could add more Bitcoin in July
The fact that the firm purchased these amounts of BTC last month is an indication that it can still add more. When such a huge organization invests billions of dollars into Bitcoin, it can be a confidence-inspiring factor and can trigger bullish trends in the next few months.
It is usually common to expect prices to be maintained and even new rallies to occur when a major player purchases huge amounts of Bitcoin. New investors will find more ease buying the cryptocurrency as they target further price increases.
The BlackRock move implies that Bitcoin as a mainstream portfolio asset is possible. With more large companies coming along, there would be additional liquidity and more stability in BTC over the long term. Their purchases could remove the severe fluctuations that have often terrified new entrants.
Some may doubt whether or not this bulk purchase will persist in the month of July. Nobody can tell the exact amount, but the buying behavior of BlackRock shows that it would continue buying as long as the market environment is decent.
Its continuous acquisitions may stimulate other institutions to either invest or increase their cryptocurrencies, and this will further support BTC’s price.
Institutional interest in Bitcoin could increase further after the leading cryptocurrency logged its highest quarterly close ever. This milestone could push it towards hitting a new all-time high.
Earlier today, Bitcoin flashed an oversold signal. The signal happens after the coin has been trading within a range for several weeks. It also suggests that the cryptocurrency is about to set a new record high.
Vladislav Sopov
U.Today Editorial Team