Latest news with #SatoshiNakamoto
Yahoo
18 hours ago
- Business
- Yahoo
Bitcoin Miner Revenue Drops to 2-Month Low, but Selling Pressure Remains Absent: CryptoQuant
Bitcoin BTC miner revenues have slid to their lowest levels in two months, but there's still no sign of forced selling, even as profitability falls. Daily mining revenue dropped to $34 million on June 22, the weakest since April and among the lowest levels over the past year, CryptoQuant said in a weekly report shared with CoinDesk. The drop comes as transaction fees decline and bitcoin hovers near local lows, reducing overall incentives for miners to stay online. Hashrate has dipped 3.5% since June 16, marking the most significant pullback in network computing power since July 2024. While modest, it reflects mounting pressure on miners already grappling with tighter margins following the halving. Yet the expected wave of miner capitulation hasn't materialized. Outflows from miner wallets have remained muted, sliding from 23,000 BTC per day in February to around 6,000 BTC currently — with no exchange transfer spikes recorded. Even wallets tied to Satoshi-era miners, often a bellwether for long-term sentiment, have barely budged: just 150 BTC sold so far in 2025, compared to nearly 10,000 BTC offloaded in 2024. Satoshi-era miners refer to network participants who mined their coins during the very early days of the Bitcoin network, typically between 2009 and 2011, when Satoshi Nakamoto, Bitcoin's pseudonymous creator, was still active on online forums. Meanwhile, data shows miner reserves are growing. Addresses holding between 100 and 1,000 BTC — typically operated by mid-sized mining entities — have added 4,000 BTC since March, pushing balances to their highest levels since November 2024. The takeaway is miners are playing the long game, either anticipating a rebound or preferring to burn through cash rather than sell at current prices. 'This further suggests there's no selling pressure coming from miners at these price levels,' CryptoQuant concluded.
Miami Herald
a day ago
- Business
- Miami Herald
Bitcoin's price journey: A data-driven history from 2009 to 2025
Bitcoin's price journey: A data-driven history from 2009 to 2025 Bitcoin launched in 2009 without much fanfare, created by the mysterious Satoshi Nakamoto. What began as a niche digital currency experiment with the bold goal of allowing people to manage and move their money freely, without relying on traditional banks or government oversight, has resulted in a more profound shift towards a global digital economy. This transformation was made possible by a breakthrough technology: blockchain. More than just a ledger, blockchain is the decentralized engine that powers secure, peer-to-peer interactions. It records every Bitcoin transaction across a vast network of computers, making it nearly impossible to alter past data without consensus. While blockchain helps reduce certain types of fraud, it doesn't eliminate all risks-scams, phishing, and other schemes remain prevalent in the crypto space. Crucially, blockchain prevents issues like "double spending," where someone might try to illegitimately use the same digital coin in multiple transactions. All of this occurs without a central authority, laying the groundwork for today's broader cryptocurrency ecosystem. Over the years, Bitcoin has faced extreme volatility. It has rallied, like its 8,000% surge in 2011, and plunged, like the 80% drawdown during the 2018 crypto winter. These swings were often aggravated by their speculative nature and sensitivity to macroeconomic forces, including inflation trends and central bank policies. Despite this turbulence, Bitcoin steadily transformed from a fringe internet experiment into a recognized financial asset, buoyed by its asymmetric recovery patterns. For instance, after each major crash (e.g., the 2014 Mt. Gox collapse or the 2022 'crypto winter'), Bitcoin regained losses and reached new all-time highs within 2–3 years. Its strength, ties to tech stocks, and tendency to move opposite to the U.S. dollar (since 2020) show it's becoming more mature and accepted by major investors, evident in key milestones like spot ETF approvals and companies adding it to their treasuries. Every Bitcoin spike and crash has a story. Some came from uncertainty, others from new technology developments. Market crashes, government spending, strict regulations, and crypto breakthroughs have all shaped its path. The start of Bitcoin In its early days, Bitcoin mostly drew the attention of tech-savvy individuals, cyberpunks and Libertarians interested in its decentralized nature. It didn't have any official market value and was exchanged casually between early adopters, but curiosity kept building. What began on the margins slowly worked its way into the spotlight. Bitcoin's price swings reflected increasing interest, growing adoption, and rampant speculation. They marked its climb from relative obscurity to global attention. As more people caught wind of it and new exchanges made buying and selling easier, Bitcoin steadily evolved from an experimental idea into a serious contender in mainstream finance. 2009–2010: The genesis years Bitcoin's early days were quiet and experimental. The first recorded trade in 2009 had almost no value. People exchanged it for fun or curiosity, not profit. There wasn't even a market price, just code and a concept. The economic backdrop helped fuel interest. The 2008 financial crisis left many disillusioned with banks and governments. As a decentralized alternative to traditional money, Bitcoin offered something different. As Bitcoin's price history shows, this distrust played a big role in shaping its appeal during these early years. In May 2010, Bitcoin had its first real-world use. A programmer named Laszlo Hanyecz paid 10,000 BTC for two pizzas in an event that became known as Bitcoin Pizza Day. At the time, Bitcoin's estimated value ranged from $25 to $41. By late 2010, Bitcoin had finally reached the open market. Prices climbed slowly but steadily, reaching between $0.10 and $0.30. For something that didn't have an exchange rate until 2010, it was a small but meaningful start. 2011: First major rally and volatility In 2011, Bitcoin saw its first dramatic price movement. It surged over 8,000%, from around $0.30 at the end of 2010 to a peak of $26.90 in June 2011. The massive rise caught the attention of tech circles, early investors, and a growing online community. That same year, Bitcoin also experienced its first major crash. Reportedly, large sell orders on the Mt. Gox exchange (then the largest Bitcoin trading platform) sent the price tumbling from around $17 to about $0.01 in minutes. Mt. Gox never explained what happened, though some theorize a hacker was involved. And though the market eventually stabilized, the damage was done. This "flash crash" gave early adopters a lesson in crypto's volatility. Prices were often driven by speculation, hype, and a lack of regulation. The foundation for future booms and busts was set. 2012–2013: Building momentum After the 2011 crash, Bitcoin began climbing again. Prices and trading volume slowly picked up as more people joined the network and exchanges became easier to use. Bitcoin was no longer just for tech-savvy users as it started to reach a broader audience. By 2013, momentum had clearly shifted. Bitcoin passed $100 in April, then hit $200 in October. In November, it reached $1,000 on Mt. Gox for the first time. Bitcoin started getting real attention. News sites covered it more often, stores and services began accepting it, and investors started treating it like more than just a novelty. It had moved beyond the idea of digital money and was emerging as a credible alternative to fiat currency and a new kind of financial asset. 2014–2016: The Mt. Gox collapse and market maturation Bitcoin faced one of its biggest setbacks in early 2014 when Mt. Gox, the largest Bitcoin exchange, went offline and filed for bankruptcy. It had reportedly lost between 650,000 to 850,000 BTC, triggering panic and shaking confidence in the young crypto market. The crash marked the start of a long bear market. By early 2015, Bitcoin prices slumped, and skeptics called it the end. But instead of fading away, the community regrouped. Even when the hype died down, developers didn't stop. While Bitcoin faded from the news cycle, they were behind the scenes, working on security and shoring up the tech to make it stronger for the future. Wallets became safer, early regulatory efforts began to take shape, and newer exchanges stepped in with better protections and more reliable platforms. 2017: The ICO boom and regulatory responses Bitcoin hit the mainstream in 2017 with a steep climb that captured global attention. The price soared from under $1,000 at the start of the year to nearly $20,000 by December. The frenzy was fueled by media coverage, hype, and a flood of speculative interest. Much of the excitement also centered around Initial Coin Offerings, or ICOs, OANDA reports.. New crypto projects were popping up almost daily, and in 2017 alone, ICOs raised approximately $4.9 billion from investors eager to get in early, even when many of those ventures had little more than a white paper to show. But the excitement came with problems. Scams, vaporware, and a lack of oversight caused concern, and governments took notice. China banned ICOs and shut down domestic crypto exchanges. Meanwhile, other countries began creating regulatory frameworks and clarifying their stance on digital assets. For example, the U.S. SEC started cracking down on unregistered securities offerings, and many jurisdictions introduced Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements for exchanges and token issuers. While the price peak made headlines, 2017 was also a turning point for how Bitcoin and the broader crypto market would be treated by regulators moving forward. 2018–2019: Bitcoin faces traditional market forces After the explosive highs of 2017, Bitcoin came back down to earth. By the end of 2018, its price dropped sharply, falling below $4,000 by the end of the year. The correction wasn't surprising because it followed the classic pattern of speculative bubbles. But this time, something had changed. Despite the downturn, institutional players didn't back off. Major firms looked into crypto custody solutions, futures products launched, and the ecosystem grew more polished. Bitcoin was no longer just the domain of hobbyists and early adopters. It also began mirroring movements in broader financial markets, particularly tech stocks and risk-on assets, reacting to macroeconomic shifts like inflation data, interest rate changes, and Federal Reserve announcements. Traders began comparing Bitcoin's movements to those of stock markets, gold, and macroeconomic indicators. While it remained volatile, Bitcoin started behaving more like a hybrid traditional asset-part risk-on asset like tech stocks, part store-of-value like gold. 2020: The COVID-19 pandemic impact In March 2020, as global markets collapsed during the early days of the COVID-19 pandemic, Bitcoin wasn't spared. Its price dipped below $8,000 in early March and dropped even further to $3,850 on March 12, wiping out nearly four months of gains in just a handful of days. The crash reminded investors that Bitcoin could still move with risk assets during moments of panic. CoinDesk's breakdown of 2020 prices captures how sharp and sudden that drop was. But the recovery was just as fast. Massive government stimulus programs and low interest rates pushed investors toward alternative assets. Bitcoin rebounded quickly, finishing the year near $30,000. During the market panic, Bitcoin briefly acted like gold, showing a moderate link (+0.47). But later that year, it moved more like riskier assets such as the S&P 500. This shows Bitcoin can play two roles: acting like 'digital gold' in times of crisis, and like a stock during market rallies. At the same time, it became more negatively linked to the U.S. dollar (nearly -0.4), suggesting it could help protect against the falling value of regular currencies. This volatility reignited the debate over Bitcoin's role. Prominent voices like Paul Tudor Jones, MicroStrategy CEO Michael Saylor, and Grayscale Investments called it "digital gold", while others saw it as a speculative play. Either way, 2020 proved that Bitcoin had a place in conversations about global finance, even in a crisis. 2021–2023: Institutional adoption accelerates In 2021, Bitcoin hit another milestone by reaching an all-time high of $64,895 on April 14. Prices surged as companies and funds began adding Bitcoin to their portfolios, and confidence in its staying power grew quickly, as shown in historical price data. Major firms like Tesla and MicroStrategy added Bitcoin to their balance sheets. Traditional financial players launched crypto products, such as ProShares' Bitcoin futures ETF and Fidelity's crypto trading platform. Payment platforms also embraced digital currencies; for instance, PayPal and Venmo enabled users to buy, hold, and sell cryptocurrencies directly within their apps.. Bitcoin was no longer on the fringe but in boardrooms and headlines. But the optimism didn't last. By 2022, markets cooled. The so-called "crypto winter" hit hard, with prices falling and several high-profile collapses shaking investor confidence. This period marked one of the sharpest reversals in the market's short life. Still, the groundwork for long-term adoption had been laid: institutional infrastructure was maturing, regulatory frameworks were taking shape, and public awareness of Bitcoin as a financial asset had never been higher. During this time, Bitcoin started to play a bigger role in shaping the overall crypto market. Other coins like Ethereum and Solana began to follow Bitcoin's price more closely. DeFi platforms also started using versions of Bitcoin, like wrapped BTC (WBTC), to tap into its large pool of money. While Bitcoin was seen more as digital gold focused on being a store of value, other coins focused on practical uses. This made Bitcoin stand out as the main currency in the crypto world. 2024: The ETF breakthrough In January 2024, the U.S. Securities and Exchange Commission approved spot Bitcoin Exchange-Traded Products (ETFs). This was a major milestone in bridging the gap between crypto and traditional finance. For the first time, everyday investors could gain direct exposure to Bitcoin through a regulated product available on mainstream stock exchanges. The market didn't wait to respond. Prices climbed as the announcement sparked a wave of renewed optimism, especially among more cautious investors who had previously stayed on the sidelines. With ETFs, getting into Bitcoin suddenly felt a lot more familiar for those used to trading stocks rather than navigating crypto wallets and exchanges. While volatility didn't disappear overnight, the tone had shifted. Bitcoin's price jumped noticeably, and the ETF approval sent a strong signal. Institutional access widened significantly, and ties between crypto and the traditional financial system seemed to be deepening. 2025: Bitcoin's current landscape Sixteen years after its launch, Bitcoin has earned a seat at the financial table. As of May 22, 2025, it is trading above $110,000, marking a significant rise from earlier levels. Trading looks calmer too, with volume and volatility down compared to earlier years, according to Yahoo Finance and CoinMarketCap. Bitcoin's role has also evolved. What was once brushed off as a passing trend is now part of the mainstream financial conversation. Bitcoin shares space with traditional assets in investment portfolios and regularly comes up in discussions about the global economy. No major central banks hold Bitcoin as a reserve asset, but they're watching closely. Regulators worldwide are shaping rules to guide how banks handle crypto exposure. Bitcoin's price history tells the story: wild highs, brutal drops, and surprising resilience. Its rise mirrors the broader shift toward digital finance, and just how far that space has come. As of 2025, Bitcoin exhibits a +0.49 correlation with high-yield corporate bonds and +0.52 with tech stocks, yet maintains a -0.29 correlation with the U.S. dollar. This interplay positions it as a risk-on asset and a macro hedge-a duality institutional investors exploit for portfolio diversification. Meanwhile, Bitcoin's volatility has halved since 2021 (daily standard deviation of ~2.1% vs. ~5.3%), aligning it closer to commodities like crude oil than hyper-volatile altcoins. Where Bitcoin goes next remains uncertain, but its past makes one thing clear-it's not going away. It has already challenged long-held assumptions about the nature of money, sovereignty, and value. This article is for general information purposes only, not to be considered a recommendation or financial advice. Past performance is not indicative of future results. Opinions are the author's; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. This story was produced by OANDA and reviewed and distributed by Stacker. © Stacker Media, LLC.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Could Bitcoin Replace the Dollar and Become the Global Reserve Currency?
Given the concerns over tariffs and a potential global trade war, a growing number of investors have suggested that Bitcoin (CRYPTO: BTC) might eventually replace the U.S. dollar and become the global reserve currency. Is this likely to happen? The answer, of course, is no. Does Bitcoin meet the criteria of a reserve currency? First of all, it's debatable whether Bitcoin has the right characteristics to be a true reserve currency. According to the Federal Reserve, money must serve three critical functions. It must be a store of value. It must be a medium of exchange. And it must be a unit of account. Bitcoin does not yet meet all three of these essential criteria. While Bitcoin is a store of value, it is not yet a popular medium of exchange for making everyday transactions. When was the last time that you used Bitcoin to pay for anything? Moreover, Bitcoin is not yet used as a unit of account. In other words, companies don't price their goods or services in Bitcoin. When you walk into a supermarket, for example, the goods on the shelves are priced in dollars, not Bitcoin. When you pump gas at the gas station, you see a price displayed in dollars, not Bitcoin. Even though Satoshi Nakamoto created Bitcoin to be a digital currency, it really trades more like a global commodity these days. People buy and hold Bitcoin, they don't spend it. For that reason, it has become fashionable to refer to Bitcoin as digital gold. Gold, too, started off as a currency, with people making gold coins to trade for things of value. Impact of tariffs It is, however, possible to imagine a future scenario in which Bitcoin finally becomes a true medium of exchange or a unit of account. However, it is highly unlikely, to say the least. It would require a tectonic readjustment of the global financial system, such as occurred in the 1920s (when the dollar replaced the pound as the global reserve currency), or in the 1970s, when the U.S. officially moved off the gold standard. In 2025, discussion is building about Bitcoin replacing the dollar. The prospect of a global trade war, combined with an out-of-control U.S. debt load of $37 trillion, has some investors thinking that nations around the world will eventually turn their back on the U.S. dollar. A natural replacement might be Bitcoin, given its global appeal and its non-sovereign status. However, even if foreign investors decide to flee the U.S. dollar and all dollar-denominated assets, it would likely require an epic agreement among all the major trading nations of the world to replace the dollar with Bitcoin. A good example is the Bretton Woods Agreement of 1944. This is when the major trading nations of the world met in the final days of WWII to discuss a reordering of the international financial system led by the U.S. The problems caused by Bitcoin hoarding Let's say, for the sake of argument, that the tariff situation gets out of hand, there is a major trade war, and top trading nations decide to meet in some far-flung foreign capital to discuss moving away from a dollar-based international financial system. Even then, it's unlikely that they would decide on Bitcoin as the new global reserve currency. That's due to one key factor: People, companies, and governments are hoarding their Bitcoin. They are pledging never to sell their Bitcoin, and that is leading to a situation where it is increasingly difficult to find new Bitcoin for sale. Even cryptocurrency exchanges are now complaining that they are running out of Bitcoin. A new report from digital asset bank Sygnum highlights the problems caused by Bitcoin hoarding. The report focuses on Strategy (NASDAQ: MSTR), which has become the largest corporate holder of Bitcoin in the world. It now holds close to 3% of all Bitcoin. The more Bitcoin that Strategy hoards for its corporate treasury, the more unlikely it is that Bitcoin can ever become the global reserve currency. According to Sygnum, once Strategy holds 5% of all Bitcoin worldwide, it will become impossible for Bitcoin to ever become a global reserve currency. Similarly, a new report from Gemini and Glassnode highlights that 30% of all Bitcoin in the world is now held by just 216 centralized entities. These include corporations, cryptocurrency exchanges, Wall Street banks, ETF investment firms, asset management firms, hedge funds, and sovereign wealth funds. So, a digital currency that was originally designed to be as decentralized as possible, embraced by billions of people around the world, is becoming highly centralized at a rapid pace. The future upside potential of Bitcoin The good news, if you're a Bitcoin investor, is that it probably does not matter if Bitcoin ever becomes the global reserve currency. People will continue to buy Bitcoin, just as people continue to buy gold. Demand for Bitcoin continues to soar. It's not just crypto enthusiasts who have embraced Bitcoin. It's now corporations, Wall Street banks, and even sovereign governments. It's hard not to be bullish on Bitcoin, even if the original vision of early crypto pioneers to replace the U.S. dollar with Bitcoin never materializes. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Forbes
15-06-2025
- Business
- Forbes
From "No Kings" To MAGA Crowns: The Irony Of Trump's Bitcoin Embrace
LOS ANGELES, CALIFORNIA - JUNE 14: Protestors march during an anti-Trump "No Kings Day" ... More demonstration (Photo by Jay) When Bitcoin emerged from the 2008 financial crisis, it brought a defiant spirit, favoring decentralized systems over centralized power and placing trust in code rather than positions of power. Its anonymous creator, Satoshi Nakamoto, embedded a message in the genesis block referencing a bank bailout headline: "The Times 03/Jan/2009 Chancellor on brink of second bailout for banks." The message was unmistakable. A loud protest against the consolidation of power in both finance and government. More than a decade later, Bitcoin has evolved from obscure internet money to a multi-trillion-dollar asset class. It has inspired an entire industry of decentralized technologies and found footholds in everything from remittances to sovereign wealth reserves. But as the movement matures, so do its contradictions. One of the most striking is the growing coronation of Donald J. Trump as Bitcoin's political champion. The 'No Kings' protests on June 14th, 2025, were a sharp reminder of the movement's original ethos and how far it may have drifted. The demonstrations, which coincided with Donald Trump's birthday celebration, added another layer of irony as some within the Bitcoin community openly celebrate the very figure hundreds of thousands protested against. Aligning the Bitcoin movement with such a polarizing political figure isn't about gaining allies, it risks alienating those who share Bitcoin's foundational values. As a protocol, Bitcoin aligns more naturally with the protestors demanding decentralization and accountability than with any politician seeking a crown. Bitcoin's origins are steeped in distrust of centralized institutions such as central banks, Wall Street bailouts, and opaque government policy. Its structure reflects the same ethos. It has no CEO or headquarters and relies on a consensus-based protocol that prevents any single party from taking control. Bitcoin doesn't rely on permission. It exists to resist capture. Bitcoin represents not just a financial tool but a philosophical stance that champions individual sovereignty over authoritarianism. This worldview has drawn an eclectic crowd, including libertarians, cypherpunks, progressive activists, and dissidents in authoritarian regimes. What unites them is a belief in open access and personal control over wealth and speech. Bitcoin, in this framing, is political but not partisan. Against this backdrop, President Donald Trump's growing presence in the crypto world raises eyebrows. Since 2024, Trump has rapidly shifted from crypto critic to crypto enthusiast, at least publicly. He launched his own memecoin established a U.S. Strategic Bitcoin Reserve, and vehemently stated his ambition to make the United States the 'crypto capital of the world.' Vice President JD Vance told the Bitcoin 2025 Conference in Las Vegas that 'crypto finally has a champion and an ally in the White House,' reiterating that the Trump White House stands solidly behind the industry. Yet the alignment is puzzling for a candidate known for centralized control, top-down decision-making, and a history of polarizing rhetoric. Trump's appeal to the crypto base, particularly Bitcoin maximalists, isn't entirely surprising. His populist messaging and anti-establishment persona align with many voters' frustrations with Washington, the Federal Reserve, and legacy media. He speaks to a desire for disruption, and Bitcoin, at its core, is disruptive. But populism and decentralization are not the same. Populism seeks to elevate a singular voice. One man, one movement, one message. Decentralization, by contrast, diffuses power across a network, removing any one person's ability to dominate. This trend raises a deeper tension between forming a strategic alliance for political protection and being absorbed into Trump's brand. It can be viewed as a calculated effort to safeguard the industry or as a sign that the movement's cultural identity is being rewritten. Many Bitcoin advocates have framed their support for Trump Administration as a practical alliance. David Bailey, chairman of Bitcoin Magazine and a leading organizer of Trump's Bitcoin outreach, posted after a closed-door meeting, For supporters like Bailey, political alignment on self-custody and regulatory clarity outweighs concerns about ideology or personality. Not everyone in the Bitcoin community shares the enthusiasm. Jason Maier, author of A Progressive's Case for Bitcoin, expressed concern about the political direction the movement is taking. His comments reflect a growing unease among those who fear that aligning too closely with partisan figures risks compromising Bitcoin's broader, nonpartisan values. The friction is palpable. Bitcoin may be permissionless, but its movement is not immune to tribalism, branding, or political co-option. Bitcoin is no stranger to ideological tension. It has weathered civil wars over block sizes, scaling solutions, and governance models. But the Trump dynamic marks a different kind of fork. A cultural one. There are no easy answers. Trump's popularity among some Bitcoin holders is undeniable. His policies may well favor crypto over the alternatives. And yet, the symbolism of elevating a singular figure, particularly one who thrives on division and dominance, sits uncomfortably next to the ideals Bitcoin was built upon. Part of the reason this dynamic has taken hold is the memetic nature of modern political discourse. Trump's ability to shape narratives through memes, slogans, and viral moments mirrors the way Bitcoin culture has spread. From laser eyes to frog memes, the overlap is more cultural than ideological. That's why the $TRUMP meme coin has found traction in crypto circles. It's not always about policy, it's about vibe. In a media landscape that rewards spectacle over substance, Trump's theatrical style finds a natural stage. But beneath the meme economy lies real risk. Political endorsements shape regulation. And cultural drift can erode hard-won principles. If Bitcoin serves as a tool for liberation, its developers, advocates, and holders face an ongoing responsibility to remain vigilant. The protocol operates neutrally, but the surrounding culture does not. While the protocol resists capture, the broader movement remains susceptible to outside influence. Trump positions himself as an ally in the fight against regulatory overreach, but beyond the bitcoin conference rallies and memecoins, a central question persists about whether the movement preserves its founding values or compromises them for political gain.
Crypto Insight
14-06-2025
- Business
- Crypto Insight
BlackRock quietly accumulated 3% of all Bitcoin. Here's what that means
BlackRock's entry into the Bitcoin market through the iShares Bitcoin Trust (IBIT) has marked a new era in institutional Bitcoin accumulation. Since its launch on Jan. 11, 2024, IBIT has grown at a pace that few expected, and no other ETF has matched. As of June 10, 2025, BlackRock holds over 662,500 BTC, accounting for more than 3% of Bitcoin's total supply. At today's prices, that's $72.4 billion in Bitcoin exposure, a staggering figure by any measure. For comparison, it took SPDR Gold Shares (GLD) over 1,600 trading days to reach $70 billion in assets under management. IBIT did it in just 341 days, making it the fastest-growing ETF in history. In addition to being a milestone for BlackRock itself, this fact also shows us how deeply institutional interest in Bitcoin has matured. BlackRock's Bitcoin holdings now eclipse those of many centralized exchanges and even major corporate holders like Strategy. In terms of raw Bitcoin ownership, only Satoshi Nakamoto's estimated 1.1 million BTC outnumbers IBIT, and that lead is narrowing. If inflows continue at the current pace, IBIT may eventually become the single largest holder of Bitcoin, a major change for Bitcoin supply distribution and ownership concentration. BlackRock Bitcoin accumulation over time Did you know? Coinbase Custody, not BlackRock, holds the private keys for the BTC in IBIT, safely storing client assets offline and backed by commercial insurance. Behind BlackRock's massive allocation is a strategic shift in how it views Bitcoin: as a legitimate component of long-term, diversified portfolios. The BlackRock Bitcoin strategy BlackRock's internal thesis embraces Bitcoin's volatility as a tradeoff for its potential upside. With IBIT, they're betting that broader adoption will stabilize the asset over time, improving price discovery, increasing liquidity and narrowing spreads. In this view, Bitcoin is a long-term play on monetary evolution and digital asset infrastructure. This philosophy (coming from the world's largest asset manager) sends a strong signal to peers. It reframes the conversation around institutional adoption of Bitcoin, shifting it from 'whether' to 'how much' exposure is appropriate. The investment case for institutional Bitcoin accumulation BlackRock highlights several factors that make Bitcoin appealing in 2025: Scarce by design: With a hard cap of 21 million coins and a halving-based issuance model, Bitcoin scarcity mirrors gold, but with a digital backbone. Some estimates suggest a meaningful share of existing coins are lost or inaccessible, making the effective supply even tighter. With a hard cap of 21 million coins and a halving-based issuance model, Bitcoin scarcity mirrors gold, but with a digital backbone. Some estimates suggest a meaningful share of existing coins are lost or inaccessible, making the effective supply even tighter. Alternative to dollar-dominance: With growing sovereign debt and geopolitical fragmentation in mind, Bitcoin's decentralized nature offers a hedge against fiat risk. It's positioned as a neutral reserve asset, resistant to government overreach and monetary manipulation. With growing sovereign debt and geopolitical fragmentation in mind, Bitcoin's decentralized nature offers a hedge against fiat risk. It's positioned as a neutral reserve asset, resistant to government overreach and monetary manipulation. Part of the broader digital transformation: BlackRock views Bitcoin as a macro proxy for the shift from 'offline' to 'online' value systems, from finance to commerce to generational wealth transfer. In their words, this trend is 'supercharged' by demographic tailwinds, especially as younger investors gain influence. Put together, these factors provide distinct risk-return characteristics that traditional asset classes can't replicate. BlackRock's framing (that Bitcoin offers 'additive sources of diversification') makes a compelling case for its integration into mainstream portfolios. BlackRock crypto portfolio integration BlackRock advocates a measured approach, 1% to 2% exposure within a traditional 60/40 stock-bond mix. This may sound small, but in a portfolio of institutional scale, it's enough to generate impact and normalize Bitcoin exposure for conservative allocators. They also benchmark Bitcoin's risk profile against high-volatility equities, like the 'Magnificent Seven' tech stocks, to demonstrate how it can fit within standard portfolio models. Did you know? Unexpected by-products ('dust') from Bitcoin transactions within IBIT have included tiny amounts of other tokens. BlackRock keeps these in a separate wallet or donates them to charity, avoiding tax complications. BlackRock's decision to accumulate over 3% of Bitcoin's total supply through its iShares Bitcoin Trust (IBIT) is a turning point for how Bitcoin is perceived, traded and regulated. Bitcoin has always been known for its volatility, driven by fixed supply, shifting sentiment and regulatory uncertainty. Historically, the relatively thin liquidity of crypto markets made large trades highly impactful. Now, with IBIT absorbing hundreds of thousands of BTC, the question is whether institutional capital will stabilize or further complicate the market. Supporters of the ETF model argue that institutional Bitcoin investment helps reduce volatility. With regulated players like BlackRock involved, the thinking goes, Bitcoin becomes more liquid, more transparent and more resistant to erratic moves. BlackRock itself has stated that broader participation improves Bitcoin price discovery, deepens market liquidity and can lead to a more stable trading environment over time. On the other hand, critics (including certain academics) warn that large-scale institutional involvement introduces traditional market risks into Bitcoin. These include leveraged trading, flash crashes triggered by algorithms and price manipulation via ETF flows. In this view, Bitcoin's financialization may trade one kind of volatility (retail-driven FOMO) for another (systemic, leverage-based risk). Also, as ETFs grow in influence, Bitcoin may become more correlated with other financial assets, undermining its value as an uncorrelated hedge. Undoubtedly, BlackRock's crypto strategy has turned Bitcoin from a fringe asset into a mainstream investment tool. For years, Bitcoin was dismissed by major financial institutions. BlackRock's deep exposure to BTC signals that the tide has turned. The launch of IBIT (and its rapid ascent to become one of the largest Bitcoin holders globally) has legitimized Bitcoin in a way no white paper or conference ever could. ETFs like IBIT offer a familiar, regulated structure for exposure, especially for institutions wary of the technical complexity or custodial risks of direct crypto ownership. BlackRock's involvement reduces reputational risk for others on the fence. In effect, this has normalized Bitcoin ownership by institutions, accelerating its inclusion in traditional portfolios. Retail investors benefit too. Instead of navigating wallets, seed phrases and gas fees, they can gain exposure to Bitcoin with a click through traditional brokerages. Did you know? Abu Dhabi's Mubadala sovereign wealth fund owns a significant stake in IBIT, with filings showing around $409 million invested. Bitcoin was built as a decentralized alternative to centralized finance. However, when the world's largest asset manager buys up over 600,000 BTC via a centralized vehicle, it creates a paradox: The decentralized asset is increasingly controlled by centralized institutions. Most users today rely on centralized exchanges (CEXs), custodians or ETFs. These platforms are easier to use, offer security features like insurance and cold storage and provide regulatory compliance (KYC, AML), which many see as essential. In contrast, decentralized tools like DEXs and self-custody wallets have higher friction, lower liquidity and less user protection. So even as Bitcoin remains technically decentralized, most people interact with it through centralized layers. Here, BlackRock's Bitcoin accumulation is emblematic. While some argue this undermines Satoshi's original vision, others view it as a necessary trade-off, a 'centralization of access' that allows Bitcoin to scale to global relevance. This is the heart of the Bitcoin centralization debate: balancing ideological purity with practical adoption. For now, the market seems to be accepting a hybrid model, with decentralized base layers and centralized access points. BlackRock's ability to launch IBIT was made possible by a landmark decision: the US Securities and Exchange Commission's approval of spot Bitcoin ETFs in early 2024. That ruling broke a years-long deadlock and opened the floodgates for institutional capital. Still, the broader regulatory environment remains inconsistent and often contradictory. One of the biggest challenges when it comes to crypto? Asset classification. The SEC continues to send mixed signals on whether various tokens, like Ether or Solana, are securities. This regulatory gray zone has delayed the development of products like staking ETFs or altcoin ETPs, and created confusion for investors, developers and issuers alike. As Commissioner Caroline Crenshaw has pointed out, the SEC's current stance creates 'muddy waters' and reactive enforcement that stifles innovation. This directly impacts whether institutions feel confident investing beyond Bitcoin. For now, Bitcoin enjoys a more straightforward regulatory path. For the broader crypto market to mature, including Ether ETFs or DeFi-linked products, a more consistent and globally aligned regulatory framework will be essential. Institutions are ready – but they need rules they can trust. Source:
