The Blockchain Group has purchased an additional 182 Bitcoins (BTC) worth about $19.5 million, according to an official statement. The company now holds a total of 1,653 BTC, worth about $172 million. According to the official statement, the company’s BTC holdings have generated a 1,171.2% gain year-to-date. The Blockchain Group is Europe’s first Bitcoin fund manager.
Institutions are hoarding Bitcoin as the market falls
bitcoin gold blocks
Source: Watcher.Guru
The Blockchain Group is not the only financial institution to buy millions of dollars worth of BTC. BlackRock, the world’s largest asset manager, bought 5,990 BTC worth about $630 million.
The increase in purchases comes as the market is in a correction across the board. Financial institutions may be following the “buy the dip” approach.
Also read: Glassnode: 216 entities control 30% of Bitcoin and can achieve 25x market gains with $1
The price of Bitcoin (BTC) has experienced a sharp correction in the past few weeks. The cryptocurrency is down 1.4% on the daily chart, 4.5% on the weekly chart, and 1.3% on the 14-day chart. Despite the correction, BTC is still up 1.3% in the past month and up 59.4% since June 2024.
Source: CoinGecko
Volatility drives cryptocurrency market down
The pullback in Bitcoin may be due to increased volatility caused by geopolitical tensions and the ongoing trade war. The escalation of the Israel-Iran conflict may have scared investors away from risky assets. President Trump’s tariff spree still worries investors.
Bitcoin (BTC) and other cryptocurrencies have experienced massive liquidations in the past few days. According to CoinGlass data, the cryptocurrency market liquidation amounted to $338.58 million in the past 24 hours.
Investors are currently focusing on the upcoming Federal Open Market Committee (FOMC) meeting. Market participants will be looking for clues on the future direction of the Fed’s monetary policy. Given the current situation, many expect the Fed to take a hawkish stance. A rate cut by the Fed could lead to increased inflows into Bitcoin (BTC) and other cryptocurrencies.
