BlackRock Sweeps Up $500 Million Even in Loss Territory, Will It Accelerate the Era of $100,000 Bitcoin?

▲ Bitcoin (BTC) Exchange-Traded Fund (ETF) ©CoinReaders

The world's largest asset manager completely overturned the market's landscape by sweeping up over $500 million in just two days, despite massive book losses for its clients. As geopolitical tensions eased, institutional investors' aggressive accumulation triggered a massive short squeeze (buying pressure occurring to liquidate or cover short positions), propelling Bitcoin (BTC) past the $78,000 mark in one go. Institutional capital is now pouring like a waterfall into major assets such as Ethereum (ETH) and XRP (Ripple).

According to the investment media outlet TradingNews on April 17 (local time), BlackRock's iShares Bitcoin Trust product showed tremendous buying power, absorbing a staggering $505.7 million in a short period of 48 hours. BlackRock's total Bitcoin holdings surged to $59.31 billion, and despite clients' average entry price being $89,000, currently representing a loss of approximately 13%, they are aggressively increasing their holdings in a bear market, demonstrating institutions' firm confidence in its long-term value.

This fierce accumulation is shaking up the supply and demand structure of the entire spot market. The cumulative assets under management of US Bitcoin spot ETFs, which recorded net inflows for three consecutive trading days, surpassed $97.9 billion, nearing the historic $100 billion mark. According to SoSoValue data, $186 million flowed in on the 15th alone, led by BlackRock. This suggests that core institutional capital with a multi-year investment horizon, not short-term speculative capital, is flowing in.

The most powerful macroeconomic catalyst for this rally is Iran's declaration to reopen the Strait of Hormuz. The reopening of the Strait of Hormuz, a key part of the global oil supply chain, led to a sharp drop in oil prices and a weakening dollar, providing immense relief to the entire risk asset market. Short sellers who misjudged the direction paid a painful price. Over the past 24 hours, $805 million worth of derivatives were forcibly liquidated, with $643 million concentrated in short positions, providing explosive fuel for the upward rally.

Institutional appetite is not limited to leading cryptocurrencies but is broadly spreading across the entire virtual asset space. As of the 16th, the Ethereum spot ETF attracted $18 million in funds, setting a record of net inflows for six consecutive trading days. The XRP spot ETF, emerging as a dark horse, also absorbed $11.87 million, pushing its cumulative assets under management past $1.08 billion. This is clear evidence that asset allocators are not just holding Bitcoin but are structurally increasing their allocation to the entire virtual asset market.

Technically, the current trend, which is receiving strong support above the 100-day exponential moving average of $75,277, suggests an early stage of a trend reversal rather than a mere rebound. If the weekly high of $76,370 is fully breached, the path is open to $82,918, where the 200-day exponential moving average is located, and potentially to $86,900 in the mid-to-long term. Experts predict that if the peace talks between the US and Iran scheduled for the weekend conclude positively, coupled with the uninterrupted inflow of institutional spot ETFs, a major bull market targeting $100,000 by the end of 2026 will officially begin.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*