CandleFocus

BlackRock bought $1 billion worth of BTC right on the eve of the dip. Is that a catastrophe?

BlackRock, the world's largest asset management company, reportedly invested $1 billion in Bitcoin just before the sharp decline in BTC price caused by the US Federal Reserve's announcement of a reduced rate cut. The announcement cast doubt on the strategic Bitcoin reserve plans. Despite the timing of the investment, BlackRock now owns over 553,000 BTC, around 2.6% of the total supply. The company's overall portfolio is valued at trillions of dollars, making the drop in BTC value negligible. BlackRock's investment in Bitcoin is seen as a way to hedge against market turbulence, and the company released an educational video about Bitcoin that raised questions about the potential removal of Bitcoin's supply cap. However, it is suggested that the mention of this possibility was a disclaimer rather than an indication of intent. Overall, BlackRock's investment in Bitcoin reflects the company's recognition of its value as a scarce asset.

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