BlackRock Buys 5X More Bitcoin After Grayscale $150 Million Sale — What Next for BTC?
Bitcoin ETF issuer BlackRock bought $750 million BTC shortly after another issuer Grayscale sold $150 million.
The coin's SOPR suggests that long-term holders profit spend is higher, indicating that the price can still increase.
Analysis shows that Bitcoin price could break out of the ascending triangle and could climb toward $103,649 again.
BlackRock, the world’s largest asset manager, significantly increased its Bitcoin (BTC) holdings on Friday, December 6. This development came briefly after another asset manager, Grayscale, sold BTC worth $150 million.
The bold acquisition signifies BlackRock’s growing confidence in the flagship cryptocurrency. With institutional players continually buying after Bitcoin’s $100,000 milestone, here is what could be next for the coin.
Bitcoin Continues to Get BlackRock’s Backing
Bitcoin’s price surged to $100,000 for the first time on Thursday, December 5.
Arkham Intelligence reported that the milestone prompted Grayscale, a Bitcoin exchange-traded fund (ETF) issuer, to sell $150 million worth of BTC.
In stark contrast, BlackRock, which is said to hold 500,000 BTC, took a different approach. The investment giant added $750 million to its Bitcoin holdings one day later, signifying confidence in the asset’s long-term prospects despite recent price swings.
According to BeInCrypto’s findings, this massive rise in BlackRock’s Bitcoin holding was vital in helping the cryptocurrency to retest $100,000 after it briefly dropped to $97,000. But the question now is: Will BTC continue to rise?
One way to know if Bitcoin’s price will continue to jump is to look at the SOPR. The SOPR stands for Spent Output Profits Ratio.
It is calculated by dividing the profits held by Long-Term Holders (LTH) by the ones held by Short-Term Holders (STH).
When the ratio is high, it means LTHs have higher spent profits than STHs.
