BlackRock purchases 11,500 Bitcoins, supply crunch coming?
In the last Bitcoin price dip, BlackRock purchased a significant amount of Bitcoin. People are now speculating that a crunch in Bitcoin supply is coming & it will be at its peak after Bitcoin halving event.
As per available data records, top fund manager BlackRock purchased a total of 11,500 Bitcoins in the last dump of the Bitcoin market. As we know that daily 900 BTC produce in the Bitcoin network via Bitcoin mining operations per day, so we can say that 11.5k represents about 13 days’ worth of Bitcoin production being absorbed by a single player.
According to available data & analysis reports, BlackRock’s iShares Bitcoin Trust (IBIT) Spot ETF managed only around 25% of the trading volume over the last two-day period (on Thursday & Friday). Here we can estimate that approximately 46,000 BTC were removed from the system over the past two days, with influences from other players like Grayscale Bitcoin Trust (GBTC).
So in one day, 23,000 BTC was removed from market supply and if this type of trend continues then the whole market will see a big Bitcoin supply crunch.
Notebely April 2024 is a very big month for the Bitcoin network because it will go through a halving event, which will further reduce the production of Bitcoin by half the current production.
Overall this is not negative news for Bitcoin lovers because it will only increase the trade price of Bitcoin. After all, lowering the demand tends to push the prices high.
A few years back, BlackRock CEO Larry Fink was a Bitcoin hater but this year he became a Bitcoin supporter & passed several Bitcoin-friendly statements.
After the approval of Bitcoin spot ETF applications by the United States Securities and Exchange Commission (SEC), Larry passed more bullish statements to support Bitcoin.
In a latest interview with Fox Business, Larry said that there is a lot of opportunity & lots of merits of Bitcoin. He also said that Bitcoin is a good store of value.
Read also: Elon Musk’s Car charging station will accept Dogecoin (Doge) payment by the end of this year
