bitcoin volatility takes center stage as the BlackRock iShares bitcoin ETF (IBIT) outperforms MicroStrategy's impressive holdings, marking a seismic shift in the cryptocurrency landscape.
MicroStrategy follows suit as BlackRock leads the charge
BlackRock's bitcoin-trust” target=”_blank” rel=”noopener nofollow”>iShares bitcoin ETF (IBIT) has quickly surpassed MicroStrategy in the race for bitcoin supremacy. In just under two months, IBIT has accumulated a staggering 195,985 bitcoins, stealing the spotlight from MicroStrategy's 193,000 bitcoin stronghold.
MicroStrategy, led by ardent bitcoin advocate CEO Michael Saylor, had been a pioneer in digital currency accumulation since August 2020, displaying a bullish stance. However, BlackRock's IBIT, launched on January 11, has become a formidable player, consistently pumping hundreds of millions of dollars worth of bitcoin into its coffers daily.
(1/4) bitcoin ETF Flow – March 8, 2024
All data included. Positive net flow of 223 million dollars for this day.
The assets of the ETFs, excluding GBTC, now exceed $28 billion, this is now greater than GBTC's assets for the first time. pic.twitter.com/5BlBTu4WLn
— BitMEX Research (@BitMEXResearch) March 9, 2024
BlackRock IBIT Emerges as a bitcoin Titan
What makes BlackRock's feat particularly notable is the dizzying pace at which IBIT has obtained this colossal amount of bitcoins. With a total of $13.5 billion, the fund has positioned itself at the forefront of the new wave of spot products, eclipsing even the renowned MicroStrategy.
bitcoin market cap currently at $1.4 trillion. Chart: TradingView.com
This sudden rise sheds light on the growing demand for these new funds, which are reshaping the cryptocurrency landscape. As the price of bitcoin soared above $70,000 for the first time in history, hitting a record high of $70,136, attention is undoubtedly focused on the BlackRock ETF and its influence on market dynamics .
bitcoin Rise: ETFs Steer the Ship
Amid this bitcoin boom, demand for spot bitcoin exchange-traded funds (ETFs) has been the lynchpin behind the coin's staggering 60% rise this year. BlackRock's IBIT, a major catalyst for this rise, has become a dominant force in the market, shaping the trajectory of bitcoin prices.
Meanwhile, MicroStrategy shares, which often mirror the movements of a bitcoin ETF, saw a staggering 300% rise in 2023, outperforming tech giants like Nvidia and Meta. With plans to raise $700 million through the sale of convertible senior notes to fund further bitcoin purchases, MicroStrategy remains a formidable competitor in the ever-evolving crypto landscape.
bitcoin Price Soars and Market Cap Hits New Highs
As bitcoin prices reached a bitcoin” target=”_blank” rel=”noopener nofollow”>record of over $71,000 on Monday, the cryptocurrencybitcoin-price-hits-new-record-high-above-71000-11710143104384.html” target=”_blank” rel=”noopener nofollow”> market capitalization rose to an unprecedented $1.40 trillion. In the year 2024 alone, bitcoin prices have witnessed a remarkable 67% rally, fueled by the influx of cash into new spot bitcoin ETFs.
bitcoin hits new ATH today. Source: Coingecko
The interplay of several factors, including institutional adoption, macroeconomic trends, regulatory developments, and investor sentiment, continues to shape bitcoin's volatile dance in the global financial arena. Federal Reserve Chairman Jerome Powell's recent statement about an anticipated interest rate cut later this year further adds an element of anticipation and speculation to bitcoin's future trajectory.
Featured image from iStock, chart from TradingView
