CashNews.co
BlackRock Labels BTC a Unique Diversifier
On Thursday, MicroStrategy (MSTR) founder and Chairman, Michael Saylor, shared BlackRock’s (BLK) latest research paper, describing BTC as a unique diversifier, stating,
“For investors, #Bitcoin is a unique diversifier. BlackRock has published some excellent research on this topic, which articulates the value of bitcoin and dispels popular misconceptions.”
BlackRock identified four key points:
- Investors struggle to analyze BTC relative to traditional asset classes, considering its unique features and limited history.
- Traditional risky assets and BTC have different risk and return drivers, making traditional finance frameworks (risk-on vs. risk-off) unsuitable.
- Some investors consider BTC a safe haven because of its scarce, non-sovereign, decentralized nature.
- Adoption will likely hinge on concerns over global monetary stability, geopolitical stability, US fiscal stability, and US political stability. BlackRock sees BTC as having an inverse relationship to traditional risky assets regarding these stability influences.
BlackRock was among the first to issue a US BTC-spot ETF and leads the way, with total net inflows of $20,924 million since January 11, 2024. The influence of the BTC-spot ETF market on BTC price trends remains significant. BTC was trading at $46,716 on January 10, 2024.
US BTC-spot ETF flow trends will remain a focal point for investors, which remains crucial in supply-demand terms.
Investors should remain alert, with Fed chatter spot ETF flow trends likely to influence BTC and the broader market. Stay updated with our latest news and analysis to manage your BTC and crypto exposures.
Technical Analysis
Bitcoin Analysis
BTC remains well above the 50-day and 200-day EMAs, confirming bullish price trends.
A breakout from Thursday’s high of $63,888 and the $64,000 resistance level could signal a move toward $67,500. Furthermore, a return to $67,500 may give the bulls a run at $70,000.
Investors should consider Fed commentary and BTC-spot ETF market trends.
Conversely, a fall through the $60,365 support level may give the bears a run at the 50-day and 200-day EMAs. A drop below the EMAs would signal a bullish trend reversal, possibly sending BTC toward the $55,000 level.
With a 61.04 14-day RSI reading, BTC could rise to $65,000 before entering overbought territory.