Bitcoin: Here's Why BlackRock and MicroStrategy Don't Panic When the Market Falls

As the crypto market goes through a period of intense turbulence, marked by a sharp drop in Bitcoin, large institutional investors are holding their ground unwaveringly. Far from giving in to panic, financial giants like BlackRock, Fidelity, Grayscale and MicroStrategy are even increasing their positions in BTC, thus affirming their conviction in the long-term potential of this cryptocurrency. This unwavering confidence contrasts sharply with the more impulsive reaction of small investors and reveals a fundamental divergence in the way in which the volatility inherent in this market is approached.

Giants remain unfazed by the storm

Bitcoin’s recent sharp drop has not caused panic among large institutional holders. BlackRock, Fidelity, Grayscale, and MicroStrategy remain committed to their BTC investments.

MicroStrategy, the leader in terms of exposure to BTC, has even strengthened its position.

The company now owns 226,500 BTC, acquired for $8.3 billion, or an average price of $36,821 per coin.

BlackRock is not left behindThe asset management giant owns 342,658 BTC, valued at over $22.5 billion as of July 31, 2024. Fidelity, another pillar of the financial sector, holds over 150,120 BTC.

The behaviour of major financial players contrasts sharply with the panic observed among small investors, which has pushed the “Fear & Greed” index into the “extreme fear” zone, with a score of 26/100.

The long term: A winning bet for major financial players

This resolutely optimistic attitude of large institutional investors in the face of the recent fall of Bitcoin is not the result of chance, but rather the reflection of a carefully considered investment strategy. Unlike small investors, who are often guided by emotion and fear, these financial giants perceive market corrections as opportunities rather than threats. Their long-term view of Bitcoin, which they see not only as an innovative digital asset, but also as a store of value potentially as solid as gold, pushes them to strengthen their positions instead of giving in to panic.

By choosing to maintain or even increase their investments despite the extreme volatility, BlackRock, Fidelity, Grayscale and MicroStrategy are sending a strong message to the entire market. They are showing that, for them, Bitcoin is not just a speculative asset, but a key element of their future investment strategy. This conviction in the long-term potential of the cryptocurrency contrasts sharply with the more nervous reaction of small investors, who are often caught out by short-term fluctuations.

This behavior of large institutional investors only strengthens the credibility of Bitcoin on the global financial scene. By refusing to be distracted by short-term market movements, these players confirm their confidence in the fundamentals of Bitcoin.