[BlackRock bets on Bitcoin to fight dollar weakness, Bitcoin price hits $62,000]
Bitcoin price encountered strong resistance near $62,200, with markets anticipating a possible pullback that could further extend a seven-month consolidation. However, in the long term, the outlook for Bitcoin remains positive. BlackRock noted at the 2024 Brazil Digital Assets Conference that holding Bitcoin has become increasingly important as the purchasing power of the U.S. dollar continues to decline since 1913.
Bitcoin prices rose 2.20% to around $62,000 on Friday. Liquidity is low over the weekend, which can lead to increased volatility. BlackRock said the purchasing power of the U.S. dollar has fallen from $1 to $0.03, emphasizing Bitcoin’s fixed supply, decentralized governance and low transaction costs as an alternative asset against inflation and the depreciation of the dollar.
Bitcoin has a market cap of $1.3 trillion, well below gold and U.S. Treasuries, but is still seen as an inflation-fighting asset. Technicals suggest that Bitcoin needs to break through the key resistance at $65,500 to push the price towards $70,000. Failure to break above could lead to a pullback to the $60,300-$61,800 support zone or even a drop to the next key support level at $57,990.
Overall, although it may face the risk of a correction in the short term, if it can break through the resistance, Bitcoin is expected to reach new highs.
