Investor interest in Bitcoin is modest, according to BlackRock CEO Larry Fink.
Investors may not come to the asset manager for exposure to the leading cryptocurrency, he added.
The drop in interest in the bellwether digital asset could be attributed to the price of Bitcoin consolidating.
Investor appetite for bitcoin has slowed, according to investment management firm BlackRock.
In a CNBC interview, Larry Fink, CEO of institutional asset management BlackRock, stated that there is no demand for cryptocurrencies.
Fink indicated in 2018 that clients were not interested in exposure to digital assets. The CEO, on the other hand, highlighted a spike in business media interest in Bitcoin and even suggested that the top cryptocurrency may be used as a wealth store.
BlackRock began trading in Bitcoin futures earlier this year, with the firm holding 37 BTC futures contracts in January, according to an SEC filing.
In February, BlackRock’s manager chief investment officer Rick Rieder revealed that the investment giant had begun to “dabble a bit into” the bellwether cryptocurrency. Rieder also proposed that investors put a portion of their cash holdings into digital assets, though he did not specify a percentage.
Despite previously stating that cryptocurrencies may become a substantial asset class, Fink stated that investor appetite for the leading digital asset has decreased. He continued, ”
We see very little investor demand for those types of products, and to be honest, that type of demand may not come to BlackRock.
Fink came to the conclusion that the company’s investors are more focused on generating long-term profits over a lengthy period of time, and that Bitcoin is not a part of “those conversations.”
The price of bitcoin has been trapped within a sinking parallel channel that first appeared in late June. On the 12-hour chart, BTC has established lower highs and lower lows that connect the upper and lower boundaries of the chart pattern.
Despite recent losses pushing Bitcoin price toward the negative trend line of the mildly bearish pattern, BTC recovered marginally as the Momentum Reversal Indicator (MRI) gave the asset a buy signal, signaling a local bottom.
12-hour chart of BTC/USDT
Bitcoin price rebounded 3.7 percent from the swing low, testing support at the 78.6 percent Fibonacci retracement level of $31,450.
The middle border of the declining parallel channel has now become resistance, and only a closing above this level at $32,844 would suggest a $730 rise for BTC, tagging the 61.8 percent Fibonacci retracement level, which coincides with the 50 twelve-hour Simple Moving Average, as the next obstacle (SMA).
However, given the prevailing technical pattern, Bitcoin price is likely to consolidate further, and BTC might revisit the 78.2 percent Fibonacci retracement level if buyers are unable to push prices higher against the sellers’ distribution./n
