BlackRock tops with $597 million despite market decline
Bitcoin is facing a pullback, now trading at around $96,259 after a 5% decline. The leading cryptocurrency is under pressure from strong US economic data, cooling investor sentiment. Bitcoin’s 24-hour low reached $96,132, with a high of $102,022. Trading volume also decreased by 23%, indicating caution in the market. This trend has affected major altcoins as well, with losses ranging from 5% to 10%.
Cryptocurrencies such as Dogecoin (DOGE) and Shiba Inu (SHIB) saw declines of 8% and 10%, respectively. Overall, the global cryptocurrency market has fallen by 16%, and is now worth $3.38 trillion.
Keep reading to see how this unfolds.
BlackRock’s IBIT defies market trends
Despite Bitcoin’s decline, BlackRock’s iShares Bitcoin ETF (IBIT) is making headlines by attracting a large number of investors. Inflows worth $597 million Even as the broader market struggles. This represents the third consecutive net inflow of spot Bitcoin ETFs, demonstrating strong institutional confidence amid market challenges.
On January 7, BlackRock’s IBIT purchased 6,078 bitcoins, worth $208.7 million — more than the amount of new bitcoin mined that day. The influx of $597 million into the ETF was a decisive boost for the EIF Crypto marketwhich witnessed cautious investor behavior due to strong US economic data. In total, spot bitcoin ETFs saw inflows of approximately $978 million, with BlackRock leading the way.
Challenges Facing Other Bitcoin ETFs
While BlackRock’s ETFs are thriving, other bitcoin ETFs have seen significant outflows. Fidelity’s FBTC, Bitwise’s BITB, and Ark Invest’s ARKB together saw over $400 million in outflows. Grayscale’s GBTC also recorded outflows of $125.45 million, highlighting the difference between BlackRock’s success and the difficulties faced by its competitors.
Impact of US economic data
Bitcoin faces additional pressure from stronger than expected US economic data. More job opportunities and better-than-expected numbers from the services sector have strengthened the US dollar, making it difficult for Bitcoin to gain momentum. Additionally, rising Treasury yields have made traditional investments more attractive, drawing attention away from cryptocurrencies.
The US Dollar Index (DXY) remains strong above 108.50, while the 10-year Treasury yield reached a 35-week high of 4.68%, exacerbating Bitcoin’s downtrend.
Silver lining?
BlackRock’s aggressive purchases of Bitcoineven during a market downturn, indicates an unwavering confidence in the long-term potential of digital assets. As the iShares Bitcoin ETF continues to attract significant inflows, it could pave the way for renewed optimism in the cryptocurrency space, especially as investors grapple with macroeconomic challenges.
As the dust settles, all eyes are on institutional players and economic trends to see where Bitcoin goes next.
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Frequently asked questions
Strong US economic data, a strong dollar, and rising Treasury yields have shifted investor focus to traditional assets, putting pressure on Bitcoin.
Major altcoins such as Dogecoin and Shiba Inu fell by 8-10%, reflecting the broader market decline as the global cryptocurrency market fell by 16%.
Strong jobs data, rising Treasury yields, and a strong US dollar index make traditional investments more attractive, attracting demand for Bitcoin.
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