Bitcoin Attracts Institutional Investment Despite Market Volatility

Robert Mitchnick, Global Head of Digital Assets at BlackRock, has stated that institutions, sovereign funds, and banks are currently buying Bitcoin during its price dips. According to Odaily, Mitchnick addressed rumors suggesting that the recent sharp decline in the market was due to the IBIT hedge fund's liquidation impacting Bitcoin prices. He clarified that the belief that hedge funds were maliciously manipulating the ETF to create volatility is unsupported by data. During last week's significant Bitcoin adjustment, BlackRock's IBIT experienced a net redemption of only 0.2%. If hedge funds were indeed aggressively liquidating for arbitrage, there would have been an outflow of billions of dollars. The reality is that liquidations were concentrated on leveraged perpetual contract platforms, while IBIT's financial position remains stable, with holders primarily consisting of long-term allocation funds.