Bitcoin recovers after BlackRock shows faith
Bitcoin has rebounded above the $67,000 (£52,541) mark after experiencing a price plunge following the digital asset's ascent to a new all-time high on Tuesday.
The recovery comes as BlackRock's iShares Bitcoin ETF (IBIT) bought bitcoin's brief dip. The fund took in over $778m worth of bitcoin (BTC) on Tuesday. BlackRock's total inflows into bitcoin via its exchange-traded fund (ETF) has now surpassed the $9bn mark.
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The US Securities and Exchange Commission (SEC) approved the first US-listed ETFs to track bitcoin (BTC-USD) in January. A spot bitcoin ETF is a financial product that investors anticipate could open the gateway for mainstream capital to flood the crypto market.
Currently, the indications are favourable, with fund managers, such BlackRock (BLK) and Franklin Templeton (BEN), increasing their allocations into the digital asset.
In the past 24 hours, the largest digital asset by market capitalisation has traded flat, changing hands for $66,675, as of the time of writing.
This influx of capital from the traditional finance sphere into spot bitcoin ETFs is acting as a major price catalyst for the digital asset, but it is not the only one. The consensus among analysts is that the upcoming 'bitcoin halving' could continue to drive inflows into the bitcoin market.
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The bitcoin halving is an event that happens about every four years and is expect to happen again this April. The halving will reduce the bitcoin reward that miners receive for validating blocks on the blockchain from the current 6.25 BTC to 3.125 BTC. This could act as a supply crunch for the digital asset, potentially leading to a price appreciation.
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