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What 500K BTC Holdings Mean for Crypto

Published

1 day ago

December 3, 2024

Coin2049 Newsletter

According to on-chain data, BlackRock’s iShares Bitcoin Trust (IBIT) now holds over 500,000 BTC. This positions BlackRock as the third-largest Bitcoin holder globally, trailing only Bitcoin’s pseudonymous creator, Satoshi Nakamoto, and crypto exchange giant Binance.

With holdings worth approximately $48 billion, BlackRock’s influence in the crypto market is expanding fast.

BlackRock’s Aggressive Bitcoin Accumulation

In just 233 trading days since the launch of IBIT, BlackRock has acquired 2.38% of all Bitcoin that will ever exist. This traction reflects its confidence in Bitcoin as a financial asset. Its series of purchases reflects this momentum, with total BlackRock Bitcoin holdings reaching 500,380 units as of Monday, December 2.

BlackRock Bitcoin Holdings. Source: iShares.com

Recently, the firm made headlines with a $680 million Bitcoin buying spree amid a cumulative effort. The purchases continue to solidify its foothold in the market. BlackRock’s pivot toward Bitcoin aligns with CEO Larry Fink’s changing perspective. Once a skeptic who dismissed Bitcoin as speculative, Fink now describes it as an “independent asset” with transformative potential.

This shift has driven BlackRock’s deepening involvement in crypto markets. The firm’s US Head of Thematics and Active ETFs, Jay Jacobs, recently said Bitcoin could become a $30 trillion market. As BeInCrypto reported, he cited more room for BTC adoption.

BlackRock’s flagship product, the iShares Bitcoin Trust (IBIT), is a central component of its Bitcoin accumulation strategy. IBIT reached $40 billion in AUM (assets under management) earlier this year, shattering speed records in the ETF industry. On its first day of options trading alone, the fund recorded sales exceeding $425 million, signaling immense interest from institutional investors.

BlackRock’s Bitcoin Valuation. Source: SoSoValue

Four weeks ago, IBIT surpassed the performance of BlacRock’s gold ETF, evidence of Bitcoin’s rising prominence in traditional finance (TradFi). According to data on SoSoValue, IBIT continues to lead the charge in the Bitcoin spot ETF market.

The financial instrument recorded inflows nearing $340 million on Monday. Its cumulative net inflow was $32.08 billion as of December 2, with Fidelity’s FBTC trailing at $11.48 billion.

BTC Institutional Adoption Stirs Decentralization Concerns

BlackRock’s Bitcoin strategy extends beyond ETFs. The firm has also increased its exposure to Bitcoin through investments in MicroStrategy, the largest corporate holder of Bitcoin. This move reflects BlackRock’s confidence in Bitcoin’s long-term value proposition and its intent to dominate the institutional Bitcoin market.

The firm’s initiatives, among those of other TradFi players, have undeniably legitimized Bitcoin as an asset class. However, not all are celebrating.

Critics within the crypto community argue that institutional dominance contradicts Bitcoin’s founding ethos of decentralization. With BlackRock amassing such significant holdings, the firm risks centralizing control in a space that was designed to empower individuals over institutions.

“There once was a dream that was Bitcoin… this is not it,” one user on X lamented.

To some critics, the growing institutional acquisition of Bitcoin defeats the whole purpose of decentralization, with the likes of BlackRock steadily edging to become the biggest hodlers.

Nevertheless, BlackRock’s rise as a major Bitcoin holder marks a pivotal shift in the cryptocurrency playing field. On one hand, it highlights Bitcoin’s mainstream acceptance and potential as a global financial asset. On the other, it raises questions about the role of large financial institutions in a space traditionally associated with grassroots financial sovereignty.

With IBIT leading the charge and setting benchmarks, the firm is poised to remain a key player in the crypto industry. However, the debate over whether this benefits or undermines Bitcoin’s foundational principles is unlikely to subside.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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BNB Price Surge: Upbeat Momentum Builds After $724 Breakout

Published

7 minutes ago

December 4, 2024

Coin2049 Newsletter

BNB has taken the spotlight with a powerful surge, breaking past the critical $724 resistance level and signaling the potential for more growth. This breakout has ignited bullish momentum, sparking speculation that the token could be gearing up for uncharted territory. With strong market sentiment and increasing trading activity, BNB appears poised to extend its rally, leaving many wondering how high it can climb in the days ahead.

This article aims to explore BNB’s recent breakout above the $724 level, delving into the key drivers behind its bullish strength. it seeks to assess whether the asset can sustain its upward trajectory and set new all-time highs by analyzing technical indicators, market sentiment, and potential resistance zones

BNB Breaks $724: A Key Milestone For The Bulls

On the 4-hour chart, BNB is positioned above the 100-day Simple Moving Average (SMA), a key indicator of its current bullish trajectory. Significantly, this alignment highlights the token’s underlying strength and suggests that positive sentiment is driving its momentum. The steady upward movement reflects growing optimism among traders, with BNB now aiming to create new highs.

An examination of the 4-hour Relative Strength Index (RSI) reveals a notable climb, with the indicator reaching the 78% threshold after rebounding from a recent low of 46%. The sharp increase underscores a strong surge in bullish momentum, as intensified buying pressure has driven the RSI into overbought territory, thereby signaling a significant change in market sentiment.

Also, the daily chart further emphasizes BNB’s strong upward momentum, marked by the formation of bullish candlesticks as the price climbs above $724, indicating the possibility of continued gains and an extension of the rally. Its position above the SMA reinforces the positive trend, demonstrating sustained strength and market confidence, setting the stage for a continued rally.

Lastly, the daily chart’s RSI recently reached 76%, indicating that BNB has entered overbought territory. This suggests a strong optimistic sentiment as substantial buying pressure drives prices higher. While this level points to the potential for more upside, it also signals that the asset may be overheating.

Can The Bulls Sustain The Momentum Beyond $724?

BNB has surged past the crucial $724 level, fueling a strong bullish movement. The critical question is whether the bulls can maintain this upward trajectory and bolster its value. If the buying pressure remains strong, the asset could be on track to reach new highs, with $800 emerging as the next key target.

However, if the cryptocurrency fails to maintain its upbeat momentum, it could begin to decline toward the $724 level. A breach below this support may spark additional downside movement, possibly leading the price to test other support zones.

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Toncoin (TON) Price Climbs Higher as Exchange Supply Declines

Published

1 hour ago

December 4, 2024

Coin2049 Newsletter

Toncoin (TON) price has surged 45.45% over the last 30 days. The RSI remains near overbought territory, and recent outflows from exchanges highlight reduced selling pressure, suggesting growing confidence among holders.

EMA lines further reinforce the bullish trend, with the price staying well above short-term averages. If TON maintains its upward trajectory, it could break the $7.198 resistance and aim for $8 in December, but a reversal might test support levels at $6.6 and $5.6.

TON RSI Is Still Close to 70

TON RSI recently almost touched the overbought threshold of 70 before retreating to its current level of 63. This pullback suggests that buying momentum has slightly weakened but remains relatively strong, as the RSI is still in bullish territory.

The current reading reflects a market where buyers maintain a slight edge, though it’s unclear if the momentum is enough to push prices significantly higher without further buying pressure.

The RSI (Relative Strength Index) measures the speed and magnitude of price movements, with values above 70 signaling overbought conditions and below 30 indicating oversold levels. TON’s RSI at 63 suggests it is still in a favorable position for potential upside.

If it rises back above 70, as it did at the end of November, TON price could regain momentum and test levels above $7.2, signaling another bullish breakout.

Toncoin Supply on Exchanges Dropped In The Last 3 Days

TON’s Supply on Exchanges has decreased to 1.68 million, down from 1.75 million on December 1. This decline indicates that holders have withdrawn approximately 800,000 TON from exchanges over the past three days.

Such a significant outflow suggests reduced selling pressure and a potential shift toward long-term holding or staking.

TON Supply on Exchanges. Source: Santiment.

Supply on exchanges reflects the amount of a token readily available for trading. A high supply is often seen as bearish, as it implies users might be preparing to sell.

Conversely, a decline in exchange supply, like the current trend for TON, is typically bullish, as it signals accumulation and confidence in the coin’s future performance. If this trend continues, it could support upward price movement as selling liquidity diminishes.

TON Price Prediction: Can It Reach $8 In December?

TON EMA lines remain bullish, with short-term lines positioned above long-term ones and the price trading well above the short-term averages.

This alignment indicates strong upward momentum, reinforcing the current bullish trend. As long as the price stays above these lines, the trend is likely to persist.

If TON sustains its uptrend and breaks the $7.198 resistance, it could extend its rally and potentially test $8 in December, a level not seen since June 2024.

Conversely, if the uptrend reverses and a downtrend emerges, TON price may first test the $6.6 support, with a deeper correction possibly pushing it down to $5.6.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Solana (SOL) Price Suggests a Pause Before the Next Rally

Published

2 hours ago

December 4, 2024

Coin2049 Newsletter

Solana (SOL) price is currently 12% below its all-time high, which was reached on November 22. Despite this recent pullback, SOL remains one of the year’s top performers, boasting an impressive 275.85% gain year-to-date.

Recent technical indicators, including the BBTrend, DMI, and EMA lines, suggest the market may be entering a consolidation phase. This could set the stage for SOL to test key support and resistance levels as it seeks its next major move.

SOL BBTrend Is Negative, But Far from Its Peak

SOL’s BBTrend is currently at -1.43, recovering from its peak negative level of -8.34 on November 28. Although it has remained negative since November 27, this less extreme reading suggests SOL may be entering a consolidation phase.

SOL price could now stabilize within a narrower range as the bearish pressure appears to be easing.

BBTrend measures price momentum relative to Bollinger Bands, with negative values indicating downward pressure and positive values signaling upward trends.

Solana current BBTrend level, while still negative, is far less bearish than its previous lows. This may reflect a transition phase, where the market is pausing to decide its next major move.

Solana Trend Isn’t Strong

SOL’s DMI chart indicates that its ADX has dropped to 20.6, down from nearly 30 just a day ago. This decline suggests weakening trend strength, potentially signaling reduced market momentum.

Meanwhile, the D+ is at 19.3 and the D- is slightly higher at 22.9, implying a slight bearish advantage as sellers maintain control over buyers.

The ADX (Average Directional Index) measures trend strength, regardless of direction. Values above 25 indicate a strong trend, while values below suggest a weak or consolidating market.

With D+ representing buying pressure and D- selling pressure, SOL current DMI readings highlight a market still leaning bearish but with less conviction, suggesting potential for consolidation or a shift in momentum.

SOL Price Prediction: A Consolidation Before Trying New All-Time High?

Solana EMA lines recently displayed a bearish signal as a short-term line crossed below a long-term line. However, the narrow gap between the lines suggests consolidation rather than a strong downtrend.

This could indicate a pause in market direction as traders await further cues.

If a downtrend develops, SOL price might test support at $221, with a further drop to $204 if this level fails. On the other hand, a recovery could push Solana toward a key resistance at $248.

Breaking this level could open the path to retesting its previous all-time high near $264.

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