On Monday (January 29) in the Asian market, Bitcoin fluctuated at a high level after a sharp rise last Friday, and is currently trading above $42,000. Some analysts pointed out that February may become a strong month for Bitcoin. At the same time, the asset management scale of BlackRock Bitcoin Spot ETF exceeded US$2 billion.
BlackRock Bitcoin ETF Assets Under Management Exceed $2 Billion
Bitcoin surged about 5% on Friday, breaking through $42,000 for the first time in more than a week. As the price of Bitcoin rose on Friday, BlackRock's spot Bitcoin ETF reached the milestone of $2 billion in assets under management.
According to Foresight News, CoinDesk reported that BlackRock's Bitcoin Spot ETF (IBIT) has exceeded US$2 billion in asset management, becoming the first ETF to reach this scale among nine similar new products (excluding Grayscale's GBTC), holding 49,952 bitcoins.
Nate Geraci, president of ETF Store, pointed out that currently, BlackRock Bitcoin ETF ranks third in asset concentration among the more than 600 ETFs issued last year. He believes that IBIT will soon take the first place.
The next fund to break the $2 billion mark is likely to be Fidelity’s Wise Origin Bitcoin Fund (FBTC), which holds nearly 44,000 Bitcoins as of January 25.
“BlackRock and Fidelity have liquidity and brand recognition that some other issuers don’t have, especially with retail investors who may be hesitant to invest in emerging asset classes,” said Roxanna Islam, an analyst at the ETF Data and Research Center.
“It’s still early in the race, but I think the gap between BlackRock and Fidelity and other issuers will only widen as issuance and assets grow,” said analyst firm VettaFi.
Anthony Scaramucci, an analyst at SkyBridge Capital, said that in the long run, companies like BlackRock and Fidelity will likely remain at the top. "BlackRock and Fidelity are going to be the two dominant names. They have the largest sales forces. The center of gravity of financial services is assets, and assets are the two largest players in the ETF space. So I think they're going to be the two winners."
Bitcoin ETF will overturn the dollar's rules
With the SEC's approval, we can now see some of the largest and most powerful companies in the financial world, including ETFs, Fidelity, Invesco IVZ and Franklin Templeton, holding billions of dollars in Bitcoin. ETFs give a large number of investors who have never traded on a cryptocurrency exchange or held their Bitcoin keys privately, immediate exposure to Bitcoin.
Some analysts pointed out that the most far-reaching impact of ETFs in promoting the institutionalization of Bitcoin is that it will be extremely difficult for the United States to ban digital assets, allowing Bitcoin to permanently promote the evolution of the basic way currency works.
Today, more than $25 billion worth of Bitcoin is held in ETFs, of which about $1 billion was generated in the two weeks after the U.S. Securities and Exchange Commission gave the green light to the new ETF. Even for a financial giant like BlackRock, this is a lot of real money.
February could be a strong month for Bitcoin
Bitcoin may not have met market expectations in January, but market analysts believe February will be more promising for the top cryptocurrency.
Analyst Jelle wrote that Bitcoin appears to be continuing the pattern that has been in focus since September last year, with 4 months in the green and 1 month in the red. If history continues to repeat itself, February should be strong.
According to his observations, Bitcoin has continued to double since March 2023. If Bitcoin continues to move in this direction, the new month could see Bitcoin regain momentum.
Similarly, Ali Chart, another prominent technical and on-chain analyst, predicted that Bitcoin could trade in a bearish zone over the next two years if it mimics previous bull runs.
“If Bitcoin mirrors past bull runs (2015-2018 and 2018-2022) from their respective market bottoms, then predictions suggest the next market peak could land around July 2025. This means BTC still has 600 days of bullish momentum!”
Bitcoin Technical Analysis
CMTrade said that the key pivot point of Bitcoin is $41,430, and it tends to be bearish to $43,280. In another case, if it rises above $41,430, the target will be $40,700 and $40,270.
From a technical perspective, the Bitcoin RSI indicator is currently below the neutral zone 50 level. The MACD indicator is bearish and is currently below the signal line, with an overall mixed outlook. In addition, the price is currently trading below the 20-period moving average and the 50-period moving average (42010 and 42246).
Key support and resistance levels: 44140; 44140; 43280; 42850; 41992; 41710; 41430
