- BlackRock, managing $11.5 trillion, recommends a 1-2% Bitcoin allocation, signaling increased institutional acceptance of cryptocurrency.
- BlackRock’s Bitcoin ETF success and diversification strategy suggest potential for reduced volatility and stabilized price movements.
- Novogratz predicts Bitcoin could reach $500,000 if the U.S. establishes a strategic reserve, highlighting its investment potential.
Galaxy CEO Mike Novogratz recently praised BlackRock’s recommendation to include Bitcoin in investor portfolios, marking a significant shift in the asset management landscape. BlackRock, the world’s largest asset manager with assets totaling $11.5 trillion, suggested a 1-2% Bitcoin allocation in portfolios, as per a report by ETHNews.
Slowly and then all at once… @BlackRock recommending up to a 2% Bitcoin allocation is massive. The world's largest asset manager now sees $BTC alongside tech giants like Apple and Tesla. Institutions are here.
— Mike Novogratz (@novogratz) December 12, 2024
This year, BlackRock launched a highly successful Bitcoin exchange-traded fund (ETF), advocating for the cryptocurrency as a diversifying investment amid traditional assets.
Novogratz highlighted BlackRock’s comparison of Bitcoin to major tech firms like Apple and Tesla, suggesting a new level of institutional support for Bitcoin. According to BlackRock, increasing institutional engagement could lead to reduced volatility in Bitcoin’s price, potentially stabilizing its market movements but also moderating its price surges.
Despite the positive outlook, ETF expert Nate Geraci pointed out that BlackRock’s recommendation targets investors interested in integrating Bitcoin into diverse asset portfolios, rather than a universal endorsement for all.
Geraci emphasized that BlackRock has maintained a cautious stance on Bitcoin’s inherent price fluctuations.
Currently, Bitcoin’s price stands at $99,624, after reaching a daily peak of $102,528. This recent surge underscores the growing market enthusiasm around potential institutional adoption and broader acceptance of Bitcoin as a legitimate asset class.
Novogratz has further speculated that Bitcoin’s value could escalate to $500,000 if the U.S. decides to establish a strategic Bitcoin reserve, a move that would underscore the cryptocurrency’s importance in national financial strategies.
This evolving perspective from major financial entities like BlackRock represents a pivotal development in the cryptocurrency domain, suggesting that Bitcoin may soon find itself on par with established investment options, thereby reshaping investment portfolios globally.
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Bitcoin has recently surpassed the significant $100,000 threshold, reaching an all-time high of $104,088 on December 4, 2024.
This surge is attributed to favorable U.S. Consumer Price Index (CPI) data and expectations of a 25 basis point interest rate cut in the upcoming Federal Reserve meeting, which have bolstered investor confidence.
Technical analysis indicates that Bitcoin is forming higher lows, suggesting sustained buying pressure. Immediate resistance is identified at the recent peak of $104,088, with support around $95,000.
The Relative Strength Index (RSI) is near 70, indicating overbought conditions and the potential for a short-term correction.
Institutional interest remains robust, with significant inflows into Bitcoin exchange-traded funds (ETFs). Notably, BlackRock’s Bitcoin ETF has seen net positive inflows, crossing over $35 billion since its inception.
Additionally, the accumulation of Bitcoin by large holders, or “whales,” suggests confidence in the asset’s long-term prospects.
