Bitcoin (BTC) fell to a low of $102,832 on Friday as escalating Middle East tensions kept the markets on tenterhooks. Rising uncertainty and tensions could also limit future rallies. The flagship cryptocurrency is down almost 1% during the ongoing session, trading around $105,103.
Despite the decline and bearish sentiment in the overall market, BTC found buyers at lower levels, highlighting the market’s desire to buy the dip.
BlackRock Holds 3% Of All Bitcoin
BlackRock’s foray into the Bitcoin market through its flagship iShares Bitcoin Trust (IBIT) heralded a new era in institutional adoption and accumulation of Bitcoin. IBIT has registered exponential growth since its launch, with BlackRock accumulating over 662,500 BTC, 3% of Bitcoin’s total supply, giving it over $72 billion in Bitcoin exposure at current prices. BlackRock’s IBIT reached $70 billion in just 341 days, making it the fastest-growing ETF in history. The world’s largest asset manager’s Bitcoin holdings now eclipse many centralized exchanges and even major corporate holders like Michael Saylor’s Strategy. Only Satoshi Nakamoto’s 1.1 million BTC outnumbers IBIT, but the gap is quickly narrowing. If inflows continue at the current pace, BlackRock’s IBIT will soon become the single-largest holder of Bitcoin.
BlackRock views Bitcoin as a crucial component of long-term, diversified portfolios, embracing its volatility as a tradeoff for potential upside. BlackRock is betting that broader adoption of the asset will stabilize price volatility over time. Improve price discovery, increase liquidity, and narrow spreads. The asset manager’s adoption and decision to accumulate over 3% of Bitcoin’s total supply through IBIT is a turning point in Bitcoin’s perception and how it is traded and regulated.
Anthony Pompliano To Launch Bitcoin-Buying Vehicle
Crypto entrepreneur Anthony Pompliano is in talks to launch a new Bitcoin-buying vehicle that will raise $750 million to fund purchases. Pompliano is widely expected to become the CEO of ProCapBTC, a Special Purpose Acquisition Company (SPAC) that will merge with publicly traded black cheque vehicle Columbus Circle Capital 1. ProCapBTC will look to raise $500 million in equity and $250 million in convertible debt as part of its merger, backed by Cohen & Company Investment Bank. The deal could be announced as early as next week. However, the terms of the deal are yet to be finalized.
Columbus Circle Capital 1 is a blank cheque company formed to effect a merger, share exchange and purchase, asset acquisition, reorganization, or similar combinations with one or more businesses. In May, the company raised $250 million through an initial public offering sponsored by Cohen & Company Capital Markets.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) lost momentum after it crossed $110,000 on Monday. Bearish sentiment had taken hold by Wednesday as the price slipped below $110,000, falling to $108,687. Bearish sentiment intensified on Thursday and Friday as Middle East tensions escalated after Israel launched missiles against Iran, targeting its military and nuclear installations. The price plunged to a low of $102,832 on Friday but recovered to reclaim $106,000 and settle at $106,100.
As tensions surged, BTC dipped while oil prices rose by 5%, with historical data suggesting the dip could be a buying opportunity. BTC’s performance during geopolitical tensions offers a compelling investment case. André Dragosch, the head of research at Bitwise Europe, highlighted this potential in a post on X, highlighting data from geopolitical events since 2010. According to the data, BTC averaged a price increase of almost 65% within 50 days, with a median gain of 17.3%. Blockstream CEO Adam Back reinforced this view to counter gold advocate Peter Schiff’s skepticism.
BTC plunged to a low of $103,768 on Monday (June 2) but rebounded to reclaim $105,000 and settle at $105,902. The price lost momentum on Tuesday, falling 0.44% to $105,436. Sellers retained control on Wednesday as BTC fell almost 1%, slipping below $105,000 and settling at $104,752. Bearish sentiment intensified on Thursday as BTC plunged 3%, dropping to a low of $100,424 before settling at $101,614. The price recovered on Friday, rising nearly 3% and settling at $104,378. Price action remained positive over the weekend as BTC rose 1.15% on Saturday and registered a marginal increase on Sunday to reclaim $105,000 and settle at $105,784.
Source: TradingView
Bullish sentiment intensified on Monday as BTC surged over 4%, crossing the 20-day SMA and $110,000 to settle at $110,251. It lost momentum on Tuesday, dropping to a low of $108,335 before recovering to reclaim $110,000 and setting at $110,253. Selling pressure returned on Wednesday as the price fell 1.42%, slipping below $110,000 and settling at $108,687. BTC continued to decline on Thursday, falling nearly 3% to $105,828. The price plunged to an intraday low of $102,832 on Friday. However, it recovered from this level to register a marginal increase and settle at $106,106. The current session sees BTC down over 1%, trading around $104,938.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
