The Game Theory Behind BlackRock's Bitcoin Acquisitions: 'It Is Unstoppable,' Influencer Claims

Pseudonymous macro influencer Peruvian Bull outlined the game theory behind Blackrock BLK potentially owning 1 million Bitcoin BTC/USD and the implications for the apex crypto.

What Happened: The influencer assumes that if BlockRock roughly owns 5% of the total supply, it will raise concerns about potential market manipulation. However, despite this accumulation, BlackRock's ability to "corner the market" would be limited due to Bitcoin’s inherent characteristics.

Let's game-theory this out.

Say Blackrock eventually owns 1M Bitcoin. Around 5% of total supply. This means they "corner the market" (according to zerohedge and other reply guys on twitter).

They can't produce any more new Bitcoin with just their holdings, and they can't…

— Peruvian Bull (@peruvian_bull) August 12, 2024

BlackRock could potentially drive price swings by strategically buying or selling large amounts of Bitcoin. Still, the ecosystem is dominated by "price-insensitive buyers," or HODLers, who accumulate and hold onto their assets regardless of market volatility.

Thus, any Bitcoin sold by BlackRock would likely end up in the hands of these strong holders, further tightening supply and driving prices up. Peruvian Bull outlined that Blackrock’s strategy to “corner” the market would involve buying large amounts of Bitcoin and triggering stop-loss orders in short and long positions.

Also Read: What Does Technical Analysis Say About Bitcoin? ‘Not Much Clarity In The Short Term,’ Says Analyst

Rather than posing a threat, BlackRock's involvement could ultimately strengthen Bitcoin’s position, the influencer posited. Bitcoin is “unstoppable”, “anti-fragile” and “censorship-resistant.” Blackrock’s potential acquisition of Bitcoin would not change these properties.

He concluded, that if one institution's participation in an ETF is seen as an existential threat, the real concern might lie elsewhere—not in the "cornering" of the market but in underestimating Bitcoin’s foundational strengths.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Bitcoin Long-Term Holders Have Been Accumulating In July, Analysts Report

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.