On August 5, 2024, a report revealed that asset management giants such as BlackRock, Fidelity, Grayscale, and MicroStrategy did not panic despite a significant drop in the crypto market. Unlike many investors who sold their assets, these institutions held their positions! Demonstrating unwavering confidence in the long-term potential of cryptocurrencies.
Crypto: A sharp drop followed by a recovery
The market drop was marked by massive selling, but a notable recovery followed the opening of the US market. Major cryptos including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) recorded impressive price increases of 10%, 12%, and 22% respectively. This recovery was partly attributed to the introduction of a Bitcoin ETF in the US, which generated a trading volume of $1.3 billion in one hour! Boosting investor and trader confidence.
Despite this rally, some whales and institutions have continued to move significant amounts of crypto to Binance. For example, one whale wallet address deposited 19,557 ETH, worth $48.14 million, while Metapha deposited 10,000 ETH, worth $25.5 million. These moves indicate some caution among major market players, even as asset managers like BlackRock and Fidelity remain firm in their positions.
Confidence from asset management giants
According to the data, BlackRock holds 342,700 BTC, Fidelity 180,000 BTC, Grayscale 226,500 BTC, and MicroStrategy 226,500 BTC. Their decision not to sell despite the market volatility reflects a long-term strategy and confidence in the resilience of crypto. This approach contrasts with that of individual investors who often tend to react more emotionally to market fluctuations.