BlackRock and Metaplanet Increase Bitcoin Holdings Amid Market Volatility

TLDR

BlackRock and Metaplanet are buying Bitcoin during market dips
BlackRock added 12,272 BTC ($742M) in 16 days, now holds 369,822 BTC
Metaplanet purchased 108.99 BTC for ¥1 billion, now holds 748.50 BTC
Recent Bitcoin price volatility caused $53 million in long liquidations
Some crypto whales are panic selling, with one whale losing $26M

In recent weeks, the cryptocurrency market has experienced significant turbulence, with Bitcoin’s price dipping below $60,000.

This volatility has triggered a wave of reactions from various market participants, ranging from panic selling to strategic buying.

BlackRock, the world’s largest asset manager, has been actively accumulating Bitcoin despite the market downturn.

Over the past 16 days, BlackRock added 12,272 Bitcoin to its holdings, valued at approximately $742 million. This recent acquisition brings BlackRock’s total Bitcoin holdings to an impressive 369,822 BTC, worth about $22.4 billion at current market prices.

The asset manager’s buying strategy appears to be closely tied to market conditions. Between August 27 and September 24, when Bitcoin traded below $60,000 for an extended period, BlackRock’s accumulation slowed.

However, since September 24, the company has resumed its purchasing activities, demonstrating confidence in Bitcoin’s long-term value.

Another institutional player, Metaplanet, has also been actively buying Bitcoin during this period of market uncertainty. The company recently acquired 108.99 BTC for ¥1 billion, at an average price of ¥9,174,396 per Bitcoin.

*Metaplanet purchases additional 108.99 $BTC* pic.twitter.com/b0fDiqcAWv

— Metaplanet Inc. (@Metaplanet_JP) October 11, 2024

This purchase comes just four days after a previous acquisition, bringing Metaplanet’s total Bitcoin holdings to 748.50 BTC, acquired for ¥6.965 billion at an average price of ¥9,304,655 per Bitcoin.

The recent market volatility has had a significant impact on traders and investors. In the past 24 hours, over $53 million in long positions were liquidated as Bitcoin’s price fell below $60,000.

This price movement has led some experts to speculate about the possibility of a more substantial correction, drawing comparisons to historical trends that have seen up to 75% drops in value.

While institutional buyers like BlackRock and Metaplanet are seizing the opportunity to accumulate Bitcoin at lower prices, some large individual holders, often referred to as “whales,” are responding differently to the market conditions.

Data from blockchain analytics firm Lookonchain reveals that one whale recently sold 800 BTC, worth approximately $48.5 million, in what appears to be a panic-driven move.

This particular whale had been accumulating Bitcoin since June 19, buying a total of 11,659 BTC at an average price of $62,362.

This whale panic-sold 800 $BTC($48.5M) again after the $BTC price dropped!

Since June 19, this whale has accumulated 11,659 $BTC($727M) at $62,362, and sold 10,345 $BTC($619M) at $59,847, losing ~$26M, and still holds 8,936 $BTC($540M).

Address:… pic.twitter.com/5pUzgvSGCr

— Lookonchain (@lookonchain) October 10, 2024

However, the recent market downturn prompted the sale of 10,345 BTC at an average price of $59,847, resulting in a loss of around $26 million. Despite this significant sell-off, the whale still maintains a substantial position of 8,936 BTC, valued at approximately $540 million.

The recent price movements in the cryptocurrency market appear to be influenced by broader economic factors. The release of the US Consumer Price Index (CPI) data for September, which indicated higher-than-expected inflation numbers, coincided with Bitcoin’s price drop below $60,000.

This correlation highlights the increasing interconnectedness between cryptocurrency markets and traditional economic indicators.

The current market conditions have dampened some investors’ hopes for a strong October performance, often referred to as “Uptober” in the crypto community.