Bitcoin (BTC) Price: BlackRock Says $9 Trillion Is About to be Redeployed — Here’s What It Means for BTC

TLDR

• Bitcoin is trading around $65,847, down 0.3% on Wednesday
• The Fed is expected to hold rates at its first meeting under new chair Kevin Warsh
• BlackRock’s Rick Rieder says up to $9 trillion in sidelined capital could be redeployed soon
• A U.S.-Iran preliminary peace deal has helped push oil prices lower, boosting risk assets
• BlackRock’s new Bitcoin ETF (ticker: BITA) is expected to launch within a week

Bitcoin is holding steady around $65,847 on Wednesday, down 0.3% as crypto markets wait for the Federal Reserve to wrap up its two-day meeting.

The Fed is widely expected to leave interest rates unchanged. This is the first meeting under new chair Kevin Warsh, and traders are paying close attention to any signals about where rates go next.

Higher or steady rates tend to weigh on assets like Bitcoin, since they reduce the appeal of speculative investments.

A recent rise in energy prices had fueled inflation concerns and speculation that the Fed might raise rates. But oil has since dropped to around $80 per barrel after the U.S. and Iran announced a preliminary peace deal.

That peace deal has helped lift Bitcoin from lows under $60,000 earlier this month. The price pushed toward $70,000 last week before pulling back to its current range.

BlackRock Flags $9 Trillion on the Sidelines

BlackRock’s global fixed income chief, Rick Rieder, said up to $9 trillion in cash is sitting on the sidelines and could soon be redeployed into markets.

Rieder also called on Chair Warsh to hold rates steady, pointing to falling energy costs as a reason inflation pressures may ease.

Bitunix analyst Dean Chen noted that Rieder’s prediction “suggests that the issue is not a shortage of liquidity. Rather, liquidity is searching for a new home.”

BlackRock Bitcoin ETF Filing Points to Imminent Launch

BlackRock has filed paperwork for a new product called the iShares Bitcoin Premium Income ETF, using the ticker BITA. Bloomberg ETF analyst Eric Balchunas said on X that the filing “typically means launch in one week.”

Spot Bitcoin ETFs have seen five straight weeks of heavy outflows, though those outflows have started to ease.

Crypto analyst Daan Crypto Trades noted on X that Bitcoin is currently consolidating between its weekly 200-day moving average and 200-day exponential moving average. He said bulls need to close the weekly candle above the 200 EMA, while the 200 MA needs to hold as support. He warned that losing the 200 MA could open the door to lower price targets.

Bitcoin’s all-time high of $126,000 was reached in October last year.

The Fed’s rate decision is due Wednesday afternoon.

The post Bitcoin (BTC) Price: BlackRock Says $9 Trillion Is About to be Redeployed — Here’s What It Means for BTC appeared first on CoinCentral.