Bitcoin experienced a significant rise of nearly 6% following the release of a report by BlackRock, the world's largest asset manager, discussing the cryptocurrency's potential as a safeguard against monetary and geopolitical risks.
BlackRock's Stance
BlackRock's report describes Bitcoin as a 'unique diversifier' separate from traditional economic and geopolitical threats. The firm also noted that Bitcoin is the first 'truly open-access monetary system' due to its decentralized, permissionless nature and lack of traditional counterparty risk.
Market Reaction
The surge in Bitcoin’s price began shortly after Eric Balchunas, a senior Bloomberg ETF analyst, disseminated the nine-page document via a Sept. 18 X post. Following this, Bitcoin's value increased by over 5.7%, momentarily reaching $62,600 for the first time in three weeks, according to Cointelegraph data.
Analysis and Predictions
This boost coincides with some analysts’ forecasts of a three-month Bitcoin rally that could potentially reach $92,000 starting in October, based on historical data and typical fourth-quarter gains. The report also emphasized Bitcoin’s robustness and performance compared to the S&P 500 and gold during significant geopolitical events.
The BlackRock report highlighted Bitcoin's importance as an independent asset capable of safeguarding against various macroeconomic risks. This stance contributed to the recent spike in its market value.
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