Bitcoin rallied nearly 6% after the world’s largest asset manager issued a white paper highlighting the digital asset’s potential as a hedge against monetary and geopolitical risks.
BlackRock published a Bitcoin (
BTC
) white paper on its appeal to investors as a “unique diversifier” that is detached from traditional fiscal and geopolitical risks.
The Bitcoin price bottomed out shortly before senior Bloomberg ETF analyst Eric Balchunas shared the nine-page white paper in a Sept. 18 X post.
Bitcoin: A Unique Diversifier, BlackRock. Source:
Eric Balchunas
Balchunas shared BlackRock’s report at 4:21 pm UTC, nearly an hour after Bitcoin started rallying from its daily bottom of $59,354.
Cointelegraph data shows that Bitcoin has since rallied over 5.7% to briefly reclaim $62,600 for the first time in over three weeks.
BTC/USD, bottom, 1-day chart. Source: Cointelegraph
Some analysts are predicting a three-month
Bitcoin rally up to $92,000
, which could start in October, based on historical chart patterns and Bitcoin’s average monthly returns for the fourth quarter of the year.
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Bitcoin can hedge against monetary and geopolitical risks: BlackRock
BlackRock’s white paper notes that Bitcoin’s decentralized, permissionless nature made it the world’s first “truly open-access monetary system,” not just a cryptocurrency.
What makes Bitcoin relevant? Source: BlackRock
The asset manager also praised Bitcoin for having “no traditional counterparty risk,” or dependencies on centralized systems. The white paper states:
To highlight Bitcoin’s resilience, the asset management giant shared a chart that shows how Bitcoin returns surpassed the S&P 500 and gold prices during past major geopolitical events.
Bitcoin, S&P 500, gold, through geopolitical crises. Source: BlackRock
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Vitalik Buterin sings at Token2049, highlights low L2 fees as ETH milestone
Bitcoin adoption will be driven by global monetary and geopolitical concerns
Bitcoin’s adoption path will be driven by the degree of macroeconomic concerns, according to BlackRock’s white paper.
Bitcoin long-term performance. Source: BlackRock
BlackRock is the issuer of the world’s largest Bitcoin exchange-traded fund (ETF), which holds over $21.4 billion worth of BTC and commands over 38% of the Bitcoin ETF market,
according
to Dune data.
ETF issuers overview. Source: Dune
Magazine:
Bitcoin ETFs may face hacker threats, Ellison seeks no prison time, and more: Hodler’s Digest, Sept. 8 – 14
BTC Surges Beyond 626K Following BlackRocks Release of Bitcoin White Paper