Bitcoin Surges After BlackRock’s White Paper Highlights Its Potential

Bitcoin sees a 6% rally following BlackRock’s white paper citing its potential as a hedge against monetary and geopolitical risks.

Bitcoin experienced a notable surge, climbing nearly 6% after BlackRock, the world’s largest asset manager, released a white paper highlighting the cryptocurrency’s potential as a hedge against global financial and geopolitical risks. The digital asset's price, which had hit a low earlier in the day, quickly bounced back following the paper's publication.

On September 18, senior Bloomberg ETF analyst Eric Balchunas shared BlackRock’s nine-page report on Bitcoin’s appeal as a unique investment asset that remains detached from traditional fiscal systems. Following this report, Bitcoin rallied from its daily low of $59,354 to over $62,600, a price it had not seen in over three weeks.

The white paper emphasized Bitcoin’s decentralized nature, free from dependencies on centralized financial systems, and praised its resilience during periods of macroeconomic uncertainty. BlackRock described Bitcoin as the world’s first “open-access monetary system,” noting that it carries no traditional counterparty risk and operates without reliance on centralized banking or government systems. The report also presented Bitcoin as a hedge against critical global risks, including banking crises, sovereign debt issues, and geopolitical disruptions.

As BlackRock’s white paper circulated, analysts and investors took note of the asset manager’s optimistic outlook on Bitcoin. Some analysts even forecasted that Bitcoin could see a rally up to $92,000 by the end of the year, driven by historical chart patterns and Bitcoin’s strong fourth-quarter performance.

BlackRock further emphasized that Bitcoin’s adoption trajectory would be shaped by macroeconomic factors, such as rising concerns over global monetary instability, US fiscal sustainability, and political uncertainty. The firm’s analysis suggests that the more these concerns intensify, the stronger the case for Bitcoin as a safe haven investment will become.

The timing of BlackRock’s white paper is also significant, as the asset manager is the issuer of the largest Bitcoin exchange-traded fund (ETF) in the world, holding over $21.4 billion worth of BTC and dominating 38% of the Bitcoin ETF market.

The surge in Bitcoin’s price following BlackRock’s release underscores the growing recognition of the cryptocurrency’s potential in traditional financial circles. As global economic and political uncertainties continue to rise, Bitcoin may increasingly be seen as a viable alternative for both retail and institutional investors.

photo source / Blockonome