Key points:
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BlackRockโs Bitcoin and Ether ETFs bought over $1 billion on Thursday while prices tanked 5% or more.
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Institutions are interested in โbuying the dipโ on both assets, a reaction says.
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Bitcoin has almost filled its latest CME futures gap with a trip to near $17,200.
Bitcoin (BTC) hovered at $119,000 into Fridayโs Wall Street open as attention focused on institutional buyers.
BlackRock buys the dip as liquidations pass $500 million
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD protecting the daily open as support.
A double hit of hot US Producer Price Index (PPI) inflation and mixed signals on the Strategic Bitcoin Reserve by Treasury Secretary Scott Bessent sparked a swift 5% BTC price retreat the day prior, with lows near $117,200.
Data from monitoring resource CoinGlass showed crypto liquidations over 24 hours nearing $1 billion.
While longs unwound, however, buyer interest from one source in particular remained conspicuous.
BlackRockโs iShares Bitcoin Trust (IBIT), the largest of the US spot Bitcoin exchange-traded funds (ETFs), added over $500 million in BTC on Thursday. Its Ether (ETH) equivalent added a similar amount, bucking the short-term price rout.
The moves did not go unnoticed by the crypto trading community, with popular trader BitBull identifying institutionsโ desire to โbuy the dip.โ
โBlackRock went all in $BTC and $ETH yesterday,โ he summarized in part of a post on X alongside data from crypto intelligence firm Arkham.
Bloomberg ETF analyst Eric Balchunas added that Thursdayโs combined trade volumes for the BTC and ETH spot ETFs totaled $11.5 billion.
โFor context thatโs about the same volume as Apple stock,โ he told X followers.
Bitcoin eats away at $117,000 CME Gap
Further optimism came from Bitcoinโs latest local bottom.
Related: Coinbase says a โfull-scale altcoin seasonโ may be just ahead
In dipping to $117,200, crypto investor and entrepreneur Ted Pillows, among others, noted that BTC/USD had mostly filled the latest weekend gap in CME Groupโsย Bitcoin futures market.
โNow I think that the worst is in for BTC and a new rally will start,โ he predicted.
As Cointelegraph reported, $117,200 was already on the radar as a significant level for a resistance/support flip.
โBitcoin recovering well from that post-PPI panic,โ fellow trader Jelle continued.ย
โPrice held the support level – the CME gap filled for 75%, price is now back above the 4h 50EMA. $120,000 remains the area to turn into support, once that’s done -> price discovery is next.โ
Daan Crypto Trades, meanwhile, suggested that the gap โcan be a good level to keep an eye on in case price does decide to do one more drive lower to take out those lows.โ
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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