Fri October 11, 2024 ▪
4
min reading ▪ acc
The crypto market is going through a turbulent period. Bitcoin staggers below $61,000, causing panic among individual investors. However, far from being intimidated, giants like BlackRock and Metaplanet are showing themselves to be opportunists. They are taking advantage of this decline, strengthening their positions and reiterating their confidence in the future of cryptocurrencies. But why are these financial titans jumping into Bitcoin while others are turning away from it?
Despite the current fall of Blackkrock, it works hard to increase the holding of bitcoins. Over the past fortnight, the world’s largest asset manager has acquired an additional 12,272 BTC, bringing its total reserve to nearly 369,822 BTC, worth around $22.4 billion. It catapults the United States to the top.
The acquisition comes after a significant lull, between the end of August and mid-September, a period during which BlackRock did not make any new purchases, preferring to watch market fluctuations.
As of September 24, however, BlackRock is back. This time around, the buying is intensifying with every drop in Bitcoin. According to analysts, this relentlessness indicates a strong belief in the potential of cryptocurrencies as an alternative to inflation and the depreciation of fiat currencies, especially the US dollar.
BlackRock doesn’t just buy; now openly advises the acquisition of Bitcoin, emphasizing its role as a safe harbor in an unstable economic context.
Metaplanet, the investment fund of Skype co-founder Jaan Tallinna, has also strategically positioned itself.
The firm recently acquired 108.99 BTC for a total of ¥1 billion, bringing its holdings to 748.50 BTC. For Metaplanet, this acquisition is a new step in its long-term investment strategy, which uses bear cycles to accumulate more bitcoins.
Panic selling of whales increases volatility
As BlackRock and Metaplanet take a “buy the dip” approach, some crypto whales are panicking.
Bitcoin’s recent declines have caused massive sell-offs, highlighting heightened nervousness among institutional and retail investors.
A notable example: a whale that had accumulated more than 11,000 BTC since June liquidated 800 BTC after a sudden drop, creating a significant loss of nearly $26 million.
The sell-off reflects a trend among bitcoin’s biggest holders, who, despite their market power, are not immune to emotional moves.
The panicked movements of these whales reinforce market volatility, leading to long liquidations of unprecedented scale.
More than $53 million was liquidated in just 24 hours, reminding retail investors that the crypto market remains extremely volatile.
Yet Blackrock and Metaplanet perceive the same volatility environment as an opportunity to enforce their dominance. Their strategy differs from that of ordinary whales: rather than panic, these giants strategically buy at price levels that are perceived as undervalued. However, the market is threatened with an immediate devastating shock.
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Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he is constantly trying to supply high quality work that reflects the condition of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.