BlackRock bought 6,088 BTC worth $638.5 million, one of the largest institutional purchases in the second quarter.
The purchase reflects a growing trend: BTC is being used as a macro hedge amid global instability.
BlackRock just bought 6,088 Bitcoin [BTC] worth nearly $638.5 million — one of the largest single BTC purchases of the quarter.
This naturally injected a new round of institutional conviction into the market.
Of course, the ripple effect wasn’t limited to sentiment. On-chain data shows that the move set off a domino effect of trading activity, forcing speculators to quickly adjust their strategies.
Short sellers caught off guard again
Following the purchase, Bitcoin short-term liquidations [surged]. This was the second-largest surge since the June 9 price breakout that led to the highest point in liquidations.
Back then, BTC’s breakout triggered a massive liquidation of short positions. This time, the same pattern reappeared.
As shorts liquidated, upward pressure quickly emerged. Bitcoin prices then surged, suggesting that bulls quickly took back control.
Moreover, if BlackRock’s allocation inspires subsequent institutional buying, a series of liquidations could drive the stock higher again.
BlackRock’s acquisition slows exchange outflows
Bitcoin exchange outflows declined last week despite the price increase.
A decline in BTC withdrawals typically means that traders and investors, led by BlackRock, are buying and holding assets in the hope of further increasing their value.
Nonetheless, if outflows begin to climb again, it could confirm a new round of accumulation and signal that bullish momentum will continue. Currently, the market is on edge, waiting for the market to cool down or recover.
BTC’s rising fame amid international uncertainty
BlackRock’s timing is crucial. Geopolitical tensions are currently ongoing and concerns about the stability of fiat currencies are growing.
Traditionally, gold has been the preferred hedge tool for such times. However, today, Bitcoin seems to be gaining popularity as a virtual hedge tool.
BlackRock’s move reflects a shift in attitudes among institutions toward Bitcoin, which is no longer viewed as a purely speculative asset but is increasingly being incorporated into broader macro strategies.
