Is BlackRock’s $1 Billion Bitcoin Buy the Start of a New Era with MicroStrategy?

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BlackRock world’s largest asset manager has made waves within the crypto space with a huge $1 billion Bitcoin buy. This big move shows just how serious they are about crypto. But that’s not all – BlackRock’s growing stake in Bitcoin and its investment in MicroStrategy point to an even closer link to Bitcoin. With its influence on Microsoft, could BlackRock’s push inspire the tech giant to add Bitcoin to its reserves?

BlackRock’s Big Bitcoin Bet

According to Arkham Intelligence, BlackRock recently made headlines by buying a huge $1 billion worth of Bitcoin.

Currently, BlackRock holds a massive 399,525 BTC, making it one of the biggest names in crypto. While they’re still behind Binance, which owns 667,526 BTC, BlackRock has been on a serious buying spree this October. They started with a $680 million Bitcoin purchase in just two days, then switched to a steady buying approach, often adding 600 BTC at a time.

This trend shows no signs of slowing down. Just this past Monday Coinpedia reported that, BlackRock invested another $311.7 million, adding 4,369 BTC to its holdings. This purchase alone made up most of the Bitcoin bought by all ETF issuers on October 28, highlighting BlackRock’s growing power in the crypto space.

Meanwhile, their Blackrock ETF, (IBIT), has attracted a lot of attention and led all ETFs in inflows this month. Larry Fink, BlackRock’s CEO, has openly supported Bitcoin, saying it’s a unique asset. His belief in Bitcoin is clear in BlackRock’s aggressive investment strategy.

Blackrock Boosts Investments In Microstrategy 

In addition to its Bitcoin purchases, BlackRock is expanding its stake in MicroStrategy to 5.2%. While MicroStrategy isn’t an ETF issuer, it is a leading corporate Bitcoin investor, and their fortunes are closely tied. 

Investing in MicroStrategy provides BlackRock with less volatility compared to holding a Bitcoin ETF, but it still keeps them connected to Bitcoin’s performance.

With its significant share in Microsoft, owning about 7% of the company, BlackRock has a say in corporate decisions, which could impact future Bitcoin investments.

Bitcoin Price Analysis

As for Bitcoin’s price, it found support at around $70,780 after hitting the $71,000 mark, last seen in March. Over the next two days, Bitcoin bounced back 1.98%, trading at around $68,500 on Monday. The Relative Strength Index (RSI) on the daily chart is at 67.67, above the neutral level, indicating bullish momentum.

If Bitcoin maintains support around $71,000, it may rally to reclaim $72,370. However, if it drops below $68,000, it could see a decline to the next support level of $67,055.