Crypto Giants Not Selling Despite the Storm! Why?

On August 5, 2024, a report revealed that asset management giants such as BlackRock, Fidelity, Grayscale, and MicroStrategy did not succumb to panic despite a significant drop in the crypto market. Unlike many investors who sold their assets, these institutions maintained their positions! Demonstrating an unwavering confidence in the long-term potential of cryptocurrencies.

Crypto: a sharp drop followed by a recovery

The market drop was marked by massive sell-offs, but a notable rebound followed the opening of the American market. The main cryptos, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), recorded impressive price increases of 10%, 12%, and 22% respectively. This rebound was partly attributed to the introduction of a Bitcoin ETF in the United States, which generated a trading volume of 1.3 billion dollars in one hour! Reinforcing the confidence of investors and traders.

Despite this recovery, some whales and institutions continued to move large quantities of crypto to Binance. For example, a whale wallet address deposited 19,557 ETH, worth 48.14 million dollars, while Metapha deposited 10,000 ETH, worth 25.5 million dollars. These movements indicate a certain caution among major market players, even though asset managers like BlackRock and Fidelity remain firm in their positions.

The confidence of asset management giants

According to the data, BlackRock holds 342,700 BTC, Fidelity 180,000 BTC, Grayscale 226,500 BTC, and MicroStrategy 226,500 BTC. Their decision not to sell despite market volatility reflects a long-term strategy and confidence in the resilience of crypto. This approach contrasts with individual investors who often tend to react more emotionally to market fluctuations.

The stability shown by BlackRock, Fidelity, Grayscale, and MicroStrategy during periods of crypto market turbulence sends a strong message about their long-term vision. As the market continues to recover, the confidence of these asset management giants might well inspire other investors to adopt a similar approach.