BlackRock’s IBIT Bitcoin (BTC) ETF has been on a buying spree since late April. According to Farside Investors, the world’s largest asset manager has purchased $1.5 billion worth of BTC since May 1. BlackRock has bought a total of $4.45 billion worth of the asset since Apr. 21.
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Bitcoin Faces Correction Despite BlackRock’s Big Purchases
BlackRock’s big BTC purchases align with the asset’s recent climb to the $97,000 mark. The asset is facing substantial resistance at $97,000. While the rally was welcomed, BTC has faced a slight price correction today. BTC has fallen to the $93,000 mark, down 0.3% in the daily charts and 1.1% over the previous week. Despite the dip, BTC has rallied 5.9% in the 14-day charts, 13.2% over the previous month, and 46.3% since May 2024.
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The recent market resurgence was likely due to an increase in institutional investments. Retail investors have likely not participated much in the rally.
Bitcoin’s latest dip could be due to Florida withdrawing two of its crypto reserve bills. The move came as a setback to crypto advocates and investors.
Will The Asset Rally Soon?
There is a chance that the Federal Reserve will drop interest rates soon. Inflation in the US has cooled more than anticipated. President Trump has also pushed for interest rate cuts. A rate cut could lead to a surge in risky investments. Bitcoin (BTC) and the larger crypto market may benefit from such a development.
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A spike in retail investors could also push BTC past the $97,000 mark. The original crypto could reclaim $100,000 if it breaks its current resistance level. Breaching $100,000 could push BTC to a new all-time high. The asset is currently down by 13.7% from its peak of $108,786.
