Despite the Sell-Off, BlackRock’s Bitcoin ETF Hits 50% Market Share—Will BTC Rally?

More from the Author Dennis Gatheca

BlackRock’s Bitcoin ETF now holds over 50% of the U.S. Bitcoin ETF market, signaling strong institutional adoption despite recent short-term outflows.

While Bitcoin faces resistance at $96,900, sustained institutional interest and key support levels suggest a potential rebound toward $100,000.

BlackRock’s Bitcoin ETF has achieved a remarkable milestone, now holding over 50% of the U.S. Bitcoin ETF market. With $56.8 billion worth of Bitcoin under its management, this development solidifies BlackRock’s growing influence in the cryptocurrency sector. However, recent market trends have introduced short-term uncertainty, leading many to wonder: Could this dominance push Bitcoin’s price even higher?

Bitcoin ETFs Face Outflows but Show Strength

Despite BlackRock’s increasing market share, Bitcoin ETFs have experienced significant outflows in recent days. A total of $364 million exited the market over three consecutive days, including $112 million from BlackRock’s iShares Bitcoin Trust ETF (IBIT) on February 20. While this might indicate investor caution, many experts view it as a short-term dip rather than a long-term concern.

Currently, Bitcoin is trading at $96,500, reflecting a 2% decline in the last 24 hours. The cryptocurrency briefly dropped to $94,900 before rebounding above the critical $96,000 level. Analysts are closely watching the $93,000 support zone, as maintaining this threshold could signal a recovery toward the $100,000 mark.

Institutional Adoption Remains Strong

Although short-term outflows may suggest volatility, BlackRock’s growing control over the Bitcoin ETF market highlights sustained institutional interest. A notable development was the $21.6 million inflow into BlackRock’s ETF on February 22. This was accompanied by a 10% increase in Bitcoin’s trading volume, reinforcing positive market sentiment.

Ethereum (ETH) also saw gains, climbing 1.7% to reach $3,200, with a trading volume of $14.5 billion. This suggests that institutional interest is not limited to Bitcoin but extends to the broader crypto market.

Key Technical Levels to Watch

Bitcoin’s price action is currently consolidating after facing resistance at $98,100. The 50-Day Exponential Moving Average (EMA) at $96,900 is acting as a critical resistance level. If BTC fails to break past this barrier, it could retest the $95,200 support. A more significant breakdown might push Bitcoin toward $93,700.

On the other hand, reclaiming momentum above $96,900 could drive Bitcoin toward the next resistance at $98,100. Traders should keep an eye on these levels, as they will likely determine Bitcoin’s short-term trajectory.

What’s Next for Bitcoin?

Despite the recent price fluctuations, BlackRock’s Bitcoin ETF dominance underscores a broader trend: institutional adoption of Bitcoin is stronger than ever. While short-term selling pressure has caused price dips, long-term investors remain optimistic about Bitcoin’s future.

As the market stabilizes, Bitcoin’s ability to hold above key support levels could pave the way for another rally. If institutional inflows continue and investor sentiment remains positive, Bitcoin may soon set its sights on the highly anticipated $100,000 mark.

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