Crypto News

Coinbase Launches Wrapped Bitcoin As BlackRock Declares Bitcoin A Hedge Against Global Uncertainty

Coinbase has introduced Wrapped Bitcoin (cbBTC), a new token backed 1:1 by Bitcoin, now available on Ethereum and Base blockchains.

This move is aimed at improving financial efficiency across multiple blockchain ecosystems.

In a significant development, BlackRock, the world’s largest asset manager with $9 trillion under its belt, has officially endorsed Bitcoin as a hedge against global instability and geopolitical risks. The firm sees Bitcoin as an alternative to traditional monetary systems, especially as trust in these systems continues to decline.

Since BlackRock launched its Bitcoin ETF in January 2024, the price of Bitcoin skyrocketed, hitting a record high of $73,000 by March. Jay Jacobs, BlackRock’s Head of Thematic and Active ETFs, emphasized Bitcoin’s potential to diversify portfolios and protect against geopolitical uncertainties, even with its notorious volatility.

On Binance, the Bitcoin Taker Buy/Sell Ratio spiked, signaling aggressive buying and hinting at possible upward price momentum.

Meanwhile, El Salvador continues its Bitcoin accumulation strategy, purchasing 1 BTC every day for the last 665 days, bringing their total holdings to 5,871 BTC, currently valued at $342 million.

Bitcoin Miners Now Earn Way Below Their Historical Average

On the mining side, the Bitcoin Puell Multiple has dropped below 0.4, indicating that miners are earning significantly less than their historical average. This drop could signal that the market is approaching a bottom, possibly offering a key buying opportunity for investors.

ETF flows showed mixed signals on September 11, with a total net outflow of $43.97 million from Bitcoin spot ETFs. However, Fidelity’s ETF saw an inflow of $12.57 million, reflecting the continued institutional interest in the cryptocurrency.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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