Bitcoin Skyrockets Above $70,000 As BlackRock Deems Asset A Good Portfolio Diversifier
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Bitcoin surged by more than 4.5% to above $70,000 on Monday, regaining lost ground after reaching an all-time high of $74,000 earlier this month.
- Until Thursday of last week, Bitcoin traded below $65,000 following a multi-day period of unusually small inflows to Bitcoin ETF products, coupled with monstrous outflows from the Grayscale Bitcoin Trust (GBTC).
- The assets price began to surge again on Friday following the Bitcoin Investor Day conference, when Robert Mitchnick BlackRocks digital assets lead labeled Bitcoin as a good portfolio diversifier.
- At the time, Mitchnick explained that the assets price movements have historically correlated with real interest rates and inflation expectations.
- Its the reason Bitcoins generally not appropriate in large concentration in a portfolio, he said at the time.
- Mitchnick also said that Bitcoin is unique for its overwhelming demand among BlackRocks clients, compared to other digital assets.
- Eventually we expect there will be a convergence where the best of the old system and the new technology will become fused into a new infrastructure system in finance, he added.
- As of Friday, BlackRocks Bitcoin ETF, IBIT, held over 240,000 BTC, more than any other Bitcoin ETF besides GBTC.
- Bitcoins Monday surge coincided with over $200 million of crypto liquidations on the day mostly impacting short traders.
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Text source: CryptoPotato
