Good news came out today. BlackRock's shareholder meeting will vote today, on Monday, to decide whether to explore buying Bitcoin. If approved, this would be a significant positive for Bitcoin, likely boosting the market and greatly reducing the chances of a downturn, as BlackRock provides liquidity.
What we see with BlackRock's ETF inflows is not BlackRock buying; it's American retail investors buying BlackRock's ETF, with BlackRock using retail funds to buy BTC, representing a flow of retail capital. The real news would be if BlackRock itself starts purchasing Bitcoin, using its own funds—that's what we call institutional involvement!!!
Several points to note:
1. The decision from tonight's vote, if approved, could lead to a FOMO rally with resistance levels likely to break through 68,500-69,500, possibly pushing towards 70,000 or even previous highs, and the sentiment might spread throughout the week. This is very positive news.
2. If approved, we need to pay attention to when they start entering the market. If it's in half a year, a year later, or if they're waiting for a specific low point, this FOMO rise could lead to a pump-and-dump scenario! If they enter the market soon, then BlackRock's entry price would be above 68,000, increasing the certainty of BTC rising by 50-100%. Altcoins might not necessarily benefit; such a decision could drain liquidity from altcoins, with major funds flowing into Bitcoin.
3. Institutional entry is a long-term investment; they won't just buy during a bull market and then sell off. Even if the market turns bearish, they'll continue to buy. So if BlackRock enters around 68,000, even if the price drops to 40,000, 30,000, or 20,000 later, they will gradually enter the market, with holding periods of 5-20 years, or even longer.
4. Both BlackRock and MicroStrategy have their own stocks. Recently, MicroStrategy's stock inflows were 5.9 billion in a day (data from international friends), which is even more than Bitcoin's inflow. So they are very likely positioning themselves in BTC to boost their stock prices, especially since the returns from BTC are far less than those from stocks.
Rationally view all of this, and I advise all coin friends to take profits first when prices rise, to protect the principal.