- Blockrock’s proposed Bitcoin exposure is crucial to the future growth of cryptocurrency.
- According to BlackRock’s analysts, an optimal risk portfolio includes 84% of Bitcoin.
- Joe Burnett believes BlackRock’s analysis could become a game changer for Bitcoin.
Michael van de Poppe, a renowned Bitcoin trader, believes that Blockrock’s proposed Bitcoin exposure is crucial to the future growth of cryptocurrency. The trader referenced a report where analysts from BlackRock, an American multinational investment company based in New York, stated that an optimal risk portfolio includes 84% of Bitcoin.
In a recent tweet, Van de Poppe questioned the opinion of those who think the flagship cryptocurrency’s price will drop to $12,000. He asserted if that becomes the case, he will buy more Bitcoins.
Similarly, Joe Burnett of Blockware, a Bitcoin solutions company, believes BlackRock’s analysis could become a game changer for Bitcoin. According to Burnett, if all investors follow BlackRock’s optimal BTC allocation, Bitcoin will be worth more than five times the total value of all equities, real estate, and bonds. He estimated that if the global wealth is worth approximately $800 trillion, BlackRock’s proposal implies Bitcoin would be worth $190 million per coin.
Bitcoin’s price slipped by nearly 5% in the past 72 hours, pulling out of a horizontal range within which it traded for the past month. The price dropped to $28,842 before returning above $29,000. Breaking below the $30,000 support led many users to suspect the price could push lower. Van de Poppe thinks otherwise, especially with recent developments surrounding BlackRock’s ETF application.
After its first application was rejected in June, BlackRock reapplied for an Exchange Traded Fund (ETF). In its second application, BlackRock is reported to have considered and addressed the concerns raised by the Securities and Exchange Commission (SEC). That led to several industry participants believing that a BlackRock ETF is imminent.
Bitcoin traded at $29,199 at the time of writing, hours before the U.S. Federal Reserve meeting today. The Feds is reportedly expected to increase interest rates by another 25%.
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