BlackRock’s Ethereum Accumulation Amid Short-Term Price Drop
Ethereum (ETH) experienced a notable decline, falling by over 2% within a single day, dropping to $2,412.95. This price drop was accompanied by a significant reduction in short-term investor sentiment, leading to large-scale liquidations in derivative markets.
In the last 24 hours, a total of $54.93 million worth of Ethereum positions were liquidated, with long positions accounting for $181.38 million—three times the amount of shorts liquidated. The recent downturn in Ethereum’s price led to the unwinding of leveraged long bets, with $21.45 million in long positions being liquidated in just four hours, highlighting the short-term uncertainty felt by traders.
Despite the negative short-term sentiment, BlackRock, the world’s largest asset management firm, has made significant purchases of Ethereum. On-chain data shows that BlackRock's wallet received 5,427 ETH (approximately $14 million) over two days (May 18-19), with one notable transaction consisting of 3,330 ETH (around $8.65 million), reflecting the firm’s active accumulation of Ethereum.
While the short-term volatility has impacted price movements, these purchases suggest that institutional demand for Ethereum remains robust, indicating that major players are positioning themselves with a long-term strategy, unaffected by short-term market fluctuations. BlackRock's CEO, Larry Fink, expressed his confidence in Ethereum in March, noting that blockchain tokenization will fundamentally change investment practices, freeing up capital previously locked in illiquid assets and driving economic growth.
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