1. Market price decline:
- On Monday, the cryptocurrency market experienced a massive drop, with global capitalization losing $100 billion and liquidating a total of more than $1 billion.
2. BlackRock investor reaction:
- Despite the market turmoil, investors in BlackRock's cryptocurrency fund, IBIT, are holding on to their holdings.
- These investors did not liquidate any of their positions, despite a loss of about 8% last week, said Eric Balchunas, senior ETF analyst at Bloomberg.
3. BlackRock Fund Flow:
- Balchunas reported a total outflow of 0.3% from BlackRock's assets under management (AUM), a small number compared to the overall market volatility.
- A third of this flow is from Grayscale's Bitcoin Trust (GBTC), which is also struggling.
4. Balchunas's predictions and warnings:
- Balchunas predicts there could be further outflows this week, possibly reaching several billion dollars.
- He expressed surprise at the HODL ability of BlackRock investors and the weakness of some other investors.
5. Bitcoin Recovery:
- After the drop, Bitcoin recovered, reaching a high of $56,957 before falling slightly to $56,672, up 3.6% in the last 24 hours.
- Cryptocurrency analyst Ali said Bitcoin is forming a “rising wedge” pattern, which is often associated with a downtrend, with a prediction that the price could go to $56,000-$57,000 but could also drop to $51,000.
Conclude:
- Despite the huge volatility in the cryptocurrency market, some investors remain confident and do not sell off. Predictions and analysis from experts still show many possible scenarios in the near future.
This is a completely personal opinion, not investment advice, so be careful with your personal financial investment factors DYOR!
#Write2Win #MarketDownturn #bitcoin
