- BlackRock increased its holdings in BTC on IBIT by 2,681 BTC to expand its holdings to over 683,000 BTC and dominate the market.
- Retail sentiment is becoming bullish; however, analysts are cautious that this may be a short-term risk since ETF inflows are high.
- The 50-day EMA at around $103,100 is crucial to Bitcoin, and breaking below this will move prices towards the $100,000 level.
BlackRock has purchased an additional 2,681 BTC to its iShares Bitcoin Trust (IBIT), making its total investment exceed 683,000 BTC. The number has since grown to exceed 3% of the supply put into circulation thus far in Bitcoin. The recent inflow of a total of $639.19 million further highlights the heavy accumulation approach employed by BlackRock in the ongoing volatile market conditions.
IBIT has now amassed a total net inflow of $50.67 billion, and the current portfolio value has now reached an estimated $7,142 billion. The steady demand for the ETF has also supported the spot price of Bitcoin, and its inflows have directly translated to purchases in the market and short sellers being forcefully liquidated.
Institutional Demand Continues to Climb
According to SoSoValue data, U.S. spot Bitcoin ETFs logged on Wednesday inflows of $389.57 million, with new inflows, representing a positive streak since June 9. This direction confirms the high institutional demand, although certain retailers are cautious.
IBIT has been the one constant grower in the midst of a wider ETF market outflow, which indicates that investors have a deep trust in the long-term BlackRock philosophy. The ETF has taken advantage of some uncertain macro environments where it has frequently performed better than its competitors in periods of market distress.
According to Santiment, there is a significant shift in retail on-chain analysis. Each bearish post has 1.03 bullish posts registered on social media, akin to what was experienced during April’s FUD created by tariffs. Historically, sharp increases in positive sentiment from retail traders have preceded market corrections, indicating possible downside.
Sentiment indicators continue to range in nature, but growing confidence of larger investors, indicated once again by consistent ETF inflows, supports an improving base for an up move. On-chain activity shows that retail speculation is possibly ahead of smart money.
Bitcoin Price Outlook
Crypto analyst Carl Moon cited a forming Head and Shoulders pattern, saying that the cryptocurrency might surge to the upside should the pattern reverse. As institutions accumulate, Moon and others are looking to larger-scale breakout indicators.
Bitcoin recovered near the 50-day Exponential Moving Average (EMA), at approximately $103,100, following a 2.1% decline out of its Fair Value Gap (FVG) area at around $108,064. It is currently trading at $104,800.
Technical indicators are bearish. The RSI is 47, below neutral, where the MACD records a bearish crossover with widening red histogram bars, both signs of loss of momentum. A daily close beneath the 50-day EMA may initiate a move to the zone of $100,000 support. Should Bitcoin retest higher above $108,064, there will be upside potential again, with a retest of the May 22 all-time high at $111,980.
