Bitcoin’s value soared nearly 6% following the release of a white paper on the potential of the digital currency by BlackRock, the world’s largest asset manager. The publication underscored Bitcoin’s uniqueness as an investment vehicle independent of traditional fiscal and geopolitical risks.
The white paper came to notice when Eric Balchunas, a senior Bloomberg ETF analyst, shared the document on September 18. Following the share, Bitcoin began to rally from a daily low of $59,354. Since then, data indicates it has surged over 5.7% to temporarily reach a three-week high of $62,600.
Forward-looking analysis suggests a three-month rally could see Bitcoin soaring to $92,000 as early as October, built upon historical trends and Bitcoin’s average fourth-quarter monthly returns.
In the white paper, BlackRock emphasizes Bitcoin’s significance as a decentralized, permissionless monetary system that stands apart as the first of its kind, not merely another cryptocurrency. Praise was also given to the digital currency for its lack of traditional counterparty risk, as it doesn’t rely upon centralized systems.
BlackRock suggests Bitcoin may offer resilience during macro risk factors such as banking crises, debt debacles, geopolitical disruption, currency debasement, and national political and economic instabilities. The paper also insinuates that Bitcoin’s future adoption will predominantly depend on the level of global economic and geopolitical apprehensions.
As the world’s largest Bitcoin exchange-traded fund (ETF) issuer, BlackRock currently holds over $21.4 billion worth of Bitcoin, commanding more than 38% of the Bitcoin ETF market.