One of the largest asset management companies in the world, BlackRock, has become immediate news headlines after buying $1 billion worth of Bitcoin (BTC) within one week. This giant purchase equates to the company owning 2.7% of all the Bitcoin that exists – 572,616 BTC. Today, these holdings are worth $58.43 billion.
BlackRock trusts Bitcoin now and it is reflected in this major move. BlackRock CEO Larry Fink thinks Bitcoin could grow in stature if people and organizations use it to safeguard their currency from inflation and economic volatility. He even mentioned that Bitcoin’s price could go up to $700,000 in case more countries and big investors start buying it as a safety net.
BLACKROCK BOUGHT $1 BILLION OF BITCOIN THIS WEEK
— Arkham (@arkham) January 26, 2025
THEY NOW HOLD 2.7% OF THE TOTAL BTC SUPPLY pic.twitter.com/bxL2hY8j5E
BlackRock’s foray into Bitcoin isn’t just about buying something as esoteric as the token. It also had a huge success with another of its Bitcoin-focused exchange traded fund (ETF), called IBIT. Trading volume on the ETF was massive and the ETF saw inflows of money break records. In this it is evident that investors are increasingly beginning to regard Bitcoin as a reliable financial tool.
Though this large purchase demonstrates faith in the Bitcoin future, it also worries that one company is now holding such a large amount of the digital asset. BlackRock selling large amounts of Bitcoin could shake the market if it ever decided to do so. But nonetheless, lots of experts believe that this is a sign that Bitcoin is becoming more mainstream.
Bitcoin price is still volatile for now. It fell below $100,000 but might find relief soon as BlackRock invests. With a big investment from such a large financial company, it shows Bitcoin is serious at the highest level possible, unlocking the door for more people and businesses to enter the cryptocurrency world.
Also read: Bitcoin Eyes $110000 Milestone as Market Signals Point to Potential Growth
