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26.03.2025 10:39 AM
Bitcoin hovering before spike above $90,000

While you're mulling over whether to buy Bitcoin or not, the world's largest asset management leader, BlackRock, is actively increasing its ETH holdings for its tokenized fund, BUIDL.

This move highlights the growing interest of institutional investors in cryptocurrency assets and their integration into traditional financial instruments. BUIDL likely provides investors with an opportunity to indirectly participate in the Ethereum ecosystem without directly owning ETH, which lowers entry barriers and simplifies the investment process.

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BlackRock's increase in ETH holdings could positively impact the price of Ethereum by boosting demand and liquidity in the market. Furthermore, it serves as a signal to other institutional players, encouraging them to explore opportunities in digital assets and blockchain technology. By showing confidence in ETH, BlackRock is essentially legitimizing cryptocurrency as an asset class worthy of attention from large investors. BlackRock's future actions in this area will be closely monitored by the market. Also, since mid-March this year, the number of whale wallets holding between 10,000 and 100,000 ETH has increased by 30%, indicating that major players are actively building positions in this asset. At the same time, the number of BTC on Strategy's balance sheet has exceeded 500,000 BTC. The company currently holds 506,137 BTC at an average purchase price of $66,608, which represents 2.4% of the total BTC supply.

This concentration of Bitcoin in the hands of a single company raises both admiration and concerns. On one hand, it confirms Strategy's belief in the long-term potential of the cryptocurrency. On the other hand, a significant market share controlled by one player could affect the volatility and stability of BTC's price. Nevertheless, this situation reinforces the strong belief in this asset by major market players, which will likely have a positive impact on the price of the world's first cryptocurrency. As for crypto enthusiasts, in his recent essay, Arthur Hayes stated that Bitcoin could rise to $110,000 before retesting the $76,500 level.

The driver for this growth will be the fact that the Federal Reserve will almost finish its Quantitative Tightening (QT) by April 1 and may begin Quantitative Easing (QE) to stimulate the economy. The Fed's balance sheet tapering pulls liquidity out of the market, putting pressure on asset prices. The cessation of this process and the potential switch to QE could catalyze an upward movement for Bitcoin and the cryptocurrency market as a whole.

Importantly, Hayes' opinion certainly draws attention in the crypto community, but this is just one possible scenario. The cryptocurrency market is unpredictable and influenced by numerous factors beyond the Fed's monetary policy.

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As for the technical picture of Bitcoin, buyers are currently targeting a return to the $88,700 level, which would open the path to $90,600, and from there, it's close to the $92,700 level. The furthest target will be the peak around $93,900, and overcoming this level would signal a return to a medium-term bullish market. In the event of a Bitcoin decline, buyers are expected at the $87,000 level. A return of the instrument below this area could quickly push BTC down to the $85,000 region, with the furthest target being $83,200.

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Regarding Ethereum's technical picture, a clear consolidation above the $2,067 level opens the direct path to $2,100. The furthest target will be the yearly high around $2,143, and overcoming this level would signify a return to a medium-term bullish market. In the event of a drop, buyers are expected at the $2,032 level. A return below this area could quickly push ETH down to the $2,000 region, with the furthest target being $1,974.

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