Bullish! BlackRock Buys $742M in BTC Despite Market Dip

Despite bitcoin’s (BTC) recent price dip below $60,000, institutional investors like BlackRock have continued aggressively increasing their bitcoin holdings.

According to data shared by crypto analyst Lookonchain, BlackRock added $742 million worth of BTC to its holdings over the past 16 days. With this accumulation, BlackRock now holds 369,822 BTC (worth approximately $22.4 billion). Notably, bitcoin traded below the $60,000 level during the 16 days.

BlackRock bought 12,272 $BTC($742M) over the past 16 days.

Between Aug 27 and Sept 24, when $BTC traded below $60K for an extended period, #BlackRock made few accumulations.

Since Sept 24, they’ve resumed buying, adding 12,272 $BTC to their holdings, and currently hold… pic.twitter.com/fnhrI4Ijp8

— Lookonchain (@lookonchain) October 11, 2024

With $22.4 billion worth of bitcoin, BlackRock is the ETF issuer with the largest bitcoin holdings, surpassing Grayscale and Fidelity.

BlackRock’s AUM Hits $11.5T

Aside from capitalizing on the BTC price dip, the latest acquisition underscores BlackRock’s confidence in bitcoin’s future potential and growth in the long term. Last week, BlackRock recommended buying bitcoin as the US dollar weakens and loses purchasing power. The asset manager views bitcoin as a potential hedge against inflation and a viable alternative to counter the declining value of the US dollar.

According to its third-quarter earnings report, BlackRock holds approximately $11.5 trillion in assets under management (AUM), up from $2.4 trillion a year earlier. Inflows into the company’s spot Bitcoin ETF, partly drove this significant AUM. Since its launch in January, BlackRock’s iShares Bitcoin Trust (IBIT) has received a historical net inflow worth $21.70 billion.

The latest record shows that investors were heavily interested in IBIT while the crypto market plummeted.

Whale Panic Sell

Meanwhile, bitcoin’s recent price volatility has led analysts to speculate about the possibility of a further 75% price decline based on historical trends. While some investors continue to increase their bitcoin holdings, others have reacted by panic selling amid the recent downturn.

According to Lookonchain, one whale recently sold 800 BTC ($48.5 million) following bitcoin’s price decline. Since June 19, the whale had accumulated 11,659 BTC ($727 million) at an average price of $62,362 but sold 10,345 BTC ($619 million) at $59,847, incurring a loss of around $26 million.

Bitcoin trades at $61,661 at press time, representing a 2% surge in the past 24 hours and a more 1% increase over the past week.