Can BlackRocks 1 Billion Bitcoin Purchase Herald a New Era alongside MicroStrategy

BlackRock, the world’s largest asset manager, has made a significant move in the cryptocurrency space by purchasing $1 billion worth of Bitcoin. This bold move demonstrates their strong commitment to crypto. However, their involvement in Bitcoin goes beyond this massive purchase.

BlackRock now holds a staggering 399,525 BTC, making them a major player in the crypto industry. While they still trail behind Binance, which owns 667,526 BTC, BlackRock has been actively buying Bitcoin throughout October. They initially acquired $680 million worth of Bitcoin in just two days and have since adopted a consistent buying strategy, frequently adding 600 BTC to their holdings at a time.

This buying spree shows no signs of slowing down. Just recently, BlackRock invested an additional $311.7 million, acquiring 4,369 BTC and accounting for the majority of Bitcoin purchases made by all ETF issuers on October 28. This further emphasizes BlackRock’s growing influence in the crypto market.

In addition to their Bitcoin purchases, BlackRock is also increasing their stake in MicroStrategy, a leading corporate Bitcoin investor, to 5.2%. While MicroStrategy is not an ETF issuer, their fortunes are closely intertwined. By investing in MicroStrategy, BlackRock can benefit from Bitcoin’s performance while mitigating some of the volatility associated with holding a Bitcoin ETF.

BlackRock’s significant ownership of Microsoft, approximately 7% of the company, also plays a role in their connection to Bitcoin. With a say in corporate decisions, BlackRock’s influence could potentially impact Microsoft’s future Bitcoin investments.

In terms of Bitcoin’s price, it recently found support at around $70,780 after reaching $71,000, a level not seen since March. Over the next two days, Bitcoin rebounded by 1.98%, trading at approximately $68,500 on Monday. The Relative Strength Index (RSI) on the daily chart is currently at 67.67, indicating bullish momentum.

If Bitcoin manages to maintain support around $71,000, it could rally and reclaim $72,370. However, if it drops below $68,000, there is a possibility of a decline to the next support level at $67,055.