At the beginning of this month, Bitcoin reached an all-time high of $74,000. On Monday, the cryptocurrency had a jump of more than 4.5%, bringing it to a price that is higher than $70,000.
Following a multi-day period of abnormally tiny inflows to Bitcoin ETF products, combined with enormous outflows from the Grayscale Bitcoin Trust (GBTC), Bitcoin traded below $65,000 until Thursday of the previous week. This occurred after significant outflows from the Grayscale Bitcoin Trust (GBTC).
Following the Bitcoin Investor Day conference, which took place on Friday, the price of the asset started to increase once more. This occurred after Robert Mitchnick, who is in charge of digital assets at BlackRock, referred to Bitcoin as a strong portfolio diversifier.
During that time period, Mitchnick provided an explanation that the price movements of the asset have traditionally been correlated with real interest rates and inflation expectations.
At the time, he stated, “It is the reason why Bitcoin is generally not appropriate in large concentrations within a portfolio.”
In addition, Mitchnick stated that Bitcoin stands out from other digital assets due to the fact that it is in such high demand among BlackRock’s customers.
He went on to say that “in the long run, we anticipate that there will be a convergence in which the most advantageous aspects of the old system and the most recent technology will be combined to form a new infrastructure system in the financial sector.”
When compared to other Bitcoin exchange-traded funds (ETFs), BlackRock’s Bitcoin exchange-traded fund (IBIT) had more than 240,000 BTC as of Friday.
Over two hundred million dollars’ worth of cryptocurrency was liquidated on Monday, primarily affecting short traders. This corresponded with the spike in Bitcoin’s price on Monday.
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