Bitcoin stabilizes after steep declines: could institutional purchases like BlackRock’s curb the fall?
Bitcoin is trying to climb back toward $95,000 after slipping below $90,000 this week. The drop follows a broader risk‑off swing that erased much of the enthusiasm from its recent $126,000 high. Investors remain jittery as macro expectations shift and volatility spikes. BlackRock bought $62.23 million of Bitcoin through its subsidiaries, signaling a long‑term view rather than a speculative fling. Though modest relative to its total assets, the purchase projects confidence and can draw other large players. Analysts say such involvement adds depth, legitimacy, and a potential stabilizing force. A waning belief in a December Fed rate cut, strained liquidity, and continued Bitcoin‑ETF outflows pushed prices to the $88,000 range. Over $559 million of leveraged crypto positions were liquidated in 24 hours, amplifying the decline. Ongoing Fed policy uncertainty and delayed labor data keep risk appetite low. Technical indicators show Bitcoin’s RSI nearing oversold levels, but momentum remains weak. Traders argue that without a firm hold above $94,000‑$96,000, the bearish trend persists, with current support near $92,000 fragile. Future direction will hinge on clearer Fed signals; BlackRock’s move offers a bright spot but may not halt the slide.