A fascinating update has emerged from the cryptocurrency world, courtesy of Arkham, a leading blockchain analytics firm. BlackRock, a giant in the investment world, has been steadily buying Bitcoin for an impressive 16 days straight.
The recent development was the asset manager buying $430 million worth of Bitcoin and adding that to their ever-rising portfolio without making even a single sale or outflow to this point. This X post is accompanied by a picture featuring a web of transactions by the wallets associated with BlackRock, which are colored in bright greens and reds against a dark background.
The fact that BlackRock has been making a wave of purchases depicts their high level of confidence in the future of BTC. An investor of the weight of BlackRock making massive acquisitions tends to stabilize the price of the asset.
This steadiness is a chance for Bitcoin investors who want to get in early, as it indicates that the worth of the asset is bound to increase in the long term. Besides, positive macroeconomic factors could drive BTC price upwards and thus provide an opportunity to investors who buy early enough to get good returns.
Why do these purchases matter?
A rising tide of institutional money can create momentum, making it a good time to explore buying or holding Bitcoin. It also means more liquidity, easier buying and selling, which lowers the risk of getting stuck with an asset they can’t trade.
In the meantime, the Coinglass data of Bitcoin derivatives indicates the increasing confidence of investors. There is a 5.32% rise in the coin’s open interest to $73.38 billion. Open interest options also rose to $50.76 billion, even though there was a decline in total turnover. This shows that traders are expecting long-term upward movements in price.
In the last 24 hours, top traders on Binance are evidently bullish. The ratio of their long positions to short positions is 1.3949. On all crypto platforms, the 24-hour long/short ratio is 1.0329 longs. Even among top Binance accounts, the ratio by account is 0.6717, indicating a stronger showing for long bias.
Earlier, the leading cryptocurrency displayed a short-to-long imbalance of 11,060% in just one hour. This resulted in $7.11 million in liquidations, with $7.05 million from short positions alone, while losses on long positions barely reached $63,740.
This imbalance suggests bears were caught off guard, and bulls are gaining ground. On-chain data also shows that BTC is the top gainer among the top 10 cryptocurrencies.
