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Highlights
- On Wednesday, Feb. 5, Bitcoin price traded as low as $97,100 amid volatile headwinds from the looming US-China tariff war.
- The world's largest digital asset manager, BlackRock, is set to launch a Bitcoin ETF in Europe, per a Bloomberg report.
- Historical BTC acquisition data shows a large support buy-wall at $96,481 that could subdue short-term losses.
Bitcoin price consolidated within the narrow 5% range between $95,000 and $100,000 on Wed Feb 5, as markets struggled under bearish headwinds from the US-China trade war. Will Blackrock expansion of Bitcoin ETFs to Europe could sway momentum?
Bitcoin (BTC) Consolidates as BlackRock’s ETF Expansion Eyes Europe
Bitcoin (BTC) remained tightly range-bound between $95,000 and $100,000 on Wednesday, Feb. 5, as broader markets faced bearish pressures stemming from geopolitical tensions.
The renewed escalation in US-China trade disputes triggered uncertainty across global equities, leading to capital flight into safe-haven assets, including Bitcoin.
As seen above, BTC price is consoldiating above the $96,45 level at press time on Feb 5, amid these macroeconomic headwinds, BlackRock’s move to introduce a Bitcoin ETF in Europe could provide a counterbalance or BTC price action in the days ahead.
With institutional demand for digital assets surging, the world’s largest asset manager is positioning itself to capitalize on growing investor appetite across international markets.
BlackRock Set to Launch Bitcoin ETF in Europe
BlackRock Inc., the world’s largest asset manager, is preparing to list an exchange-traded product directly tied to Bitcoin in Europe.
This move follows the overwhelming success of its US-based Bitcoin ETF, which has already amassed $58 billion in assets under management.
According to Bloomberg sources, the fund is likely to be domiciled in Switzerland, a jurisdiction known for its crypto-friendly regulatory environment. Marketing efforts for the European ETF could begin as early as this month, although BlackRock has yet to confirm an official launch date.
The firm’s growing involvement in the Bitcoin market is underscored by its extensive holdings. Data from Arkham Intelligence reveals that BlackRock currently holds 582,000 BTC, making it the largest known corporate holder of Bitcoin.
This figure surpasses MicroStrategy’s Bitcoin reserves, which stand at approximately 471,200 BTC as of Feb. 5. Beyond Bitcoin, BlackRock maintains significant exposure to other crypto-related assets, reinforcing its long-term commitment to digital finance.
Larry Fink, BlackRock’s CEO, has increasingly advocated for Bitcoin’s role as a hedge against currency debasement. Speaking at the World Economic Forum in Davos, Fink emphasized the growing recognition of Bitcoin’s value proposition among institutional investors.
The success of the US spot Bitcoin ETF market has set a precedent for expansion, with BlackRock’s iShares Bitcoin Trust (IBIT) leading the pack. The fund has shattered records, achieving the most successful ETF debut in history. With $116 billion flowing into the 12 US-based Bitcoin ETFs to date, the European iteration could attract significant institutional capital.
BlackRock’s European Bitcoin ETF Could Shape Market Dynamics
BlackRock’s strategic expansion into Europe introduces several key implications for Bitcoin’s market trajectory. Beyond unlocking new liquidity streams, the move could influence regulatory frameworks, decentralization trends, and risk mitigation efforts within the crypto ecosystem.
- Increased Decentralization
With a significant share of institutional Bitcoin activity concentrated in the US, BlackRock’s expansion to Europe could further decentralize market influence. European institutions have historically exhibited cautious engagement with crypto assets due to regulatory uncertainties. However, a BlackRock-backed Bitcoin ETF could encourage greater adoption, leading to a broader distribution of Bitcoin’s ownership structure.
- Regulatory Harmonization
The introduction of a European Bitcoin ETF could accelerate global regulatory cooperation on digital assets. Unlike the fragmented regulatory landscape in the US, Europe has made strides toward unified crypto regulations through frameworks such as the Markets in Crypto-Assets (MiCA) regulation. BlackRock’s presence in the region may prompt policymakers to refine oversight measures, fostering a more structured institutional investment environment.
Mitigation of Political Risk
The global cryptocurrency industry remains heavily influenced by US policy decisions. With former President Donald Trump signaling a push for increased American dominance in blockchain and artificial intelligence, potential regulatory shifts could impact Bitcoin’s market stability.
By diversifying its Bitcoin exposure beyond North America, BlackRock is positioning itself to hedge against US-centric political and economic risks.
Bitcoin’s ability to maintain support at $96,000 amid macroeconomic turbulence will be critical in determining its short-term trajectory. Should BlackRock’s ETF launch gain traction in Europe, Bitcoin’s price resilience could be further reinforced by institutional inflows, potentially setting the stage for the next leg of bullish momentum.
Bitcoin Price Outlook: Major rebound ahead of $96k support holds
Bitcoin price forecast charts shows BTC is could find crucial support zone at the $96,000 level.
Historical on-chain accumulation data from IntoTheBlock shows the largest concentration of BTC acquisition sits between $69,565 and $96,481, with an average buy-in price of $85,515. This suggests a strong buy-wall at $96,481, which could serve as a floor for Bitcoin in the near term.
On the flip side, next major Bitcoin price resistance zone is located between $96,481 and $100,410. Should Bitcoin breach $100,410, it could open the door to further upside momentum toward the $106,839 level.
Bitcoin’s ability to maintain support at $96,000 amid macroeconomic turbulence will be critical in determining its short-term trajectory.
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