"Many investors have started to use bitcoin as a hedge against a potential devaluation of the dollar, known in trading circles as "debasement trades." The surge earlier in the week was fueled by heavy inflows into Bitcoin exchange-traded funds (ETF) and speculative bets on fiat currency weakness amid a prolonged U.S. government shutdown. According to Bloomberg analyst Eric Balchunas, BlackRock's IBIT led all ETFs in weekly inflows with $3.5 billion, accounting for 10% of total ETF net flows."
"Launched only 21 months ago, IBIT is approaching $100 billion in assets under management, making it BlackRock's most profitable fund - surpassing even products that have been around for over 20 years. However, uncertainty around the ongoing government shutdown - now in its second week - and the delay of key economic data has prompted some investors to seek safer assets, temporarily weighing on Bitcoin's appeal."
""Overall, dips are for buying," noted market analyst Mags on X."
Bitcoin traded around $123,962 after touching the mid-$120,000s and reaching record highs above $126,000 earlier in the week. Profit-taking and a strengthening U.S. dollar pressured the earlier rally tied to so-called "debasement-trade" flows. Heavy inflows into spot Bitcoin ETFs and speculative bets on fiat weakness amid a U.S. government shutdown boosted the surge, with BlackRock's IBIT attracting $3.5 billion in weekly inflows and nearing $100 billion assets under management. Shutdown uncertainty and delayed economic data prompted some demand for safer assets, producing a healthy correction with support near $120,000 and resistance around $135,000.
Read at Bitcoin Magazine
Unable to calculate read time
Collection
[
|
...
]