Key points:
BlackRock’s Bitcoin and Ether ETFs bought over $1 billion on Thursday while prices tanked 5% or more.
Institutions are interested in “buying the dip” on both assets, a reaction says.
Bitcoin has almost filled its latest CME futures gap with a trip to near $17,200.
Bitcoin (BTC) hovered at $119,000 into Friday’s Wall Street open as attention focused on institutional buyers.
BTC/USD one-hour chart. Source: Cointelegraph/TradingView
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.
Crypto hourly liquidations (screenshot). Source: CoinGlass
While longs unwound, however, buyer interest from one source in particular remained conspicuous.
BlackRock’s 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.
US Bitcoin, spot Ether ETF netflows (screenshot). Source: Farside Investors
The moves did not go unnoticed by the crypto trading community, with popular trader BitBull identifying institutions’ desire to “buy the dip.”
“BlackRock went all in $BTC and $ETH yesterday,” he summarized in part of a post on X alongside data from crypto intelligence firm Arkham.
Bloomberg ETF analyst Eric Balchunas added that Thursday’s combined trade volumes for the BTC and ETH spot ETFs totaled $11.5 billion.
“For context that’s about the same volume as Apple stock,” he told X followers.
Bitcoin eats away at $117,000 CME Gap
Further optimism came from Bitcoin’s latest local bottom.
Related: Coinbase says a ‘full-scale altcoin season’ 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 Group’s Bitcoin futures market.
“Now I think that the worst is in for BTC and a new rally will start,” he predicted.
As Cointelegraph reported, $117,200 was already on the radar as a significant level for a resistance/support flip.
“Bitcoin recovering well from that post-PPI panic,” fellow trader Jelle continued.
“Price 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.”BTC/USD chart. Source: Jelle/X
Daan Crypto Trades, meanwhile, suggested that the gap “can 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.”
CME Bitcoin futures one-hour chart. Source: Daan Crypto Trades/X
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.
