Why BlackRock Keeps Buying Bitcoin Even As It Falls

▲ BlackRock Bitcoin/ChatGPT generated image ©

BlackRock is reigniting the 'institutional accumulation → supply shortage' scenario by massively accumulating Bitcoin even amidst a price decline.

According to the cryptocurrency specialized media outlet Finbold on April 24 (local time), BlackRock, which operates the Bitcoin (BTC) spot ETF iShares Bitcoin Trust (IBIT), has increased its Bitcoin holdings by over 5% since 2026. Its holdings, which were approximately 770,290 BTC at the beginning of the year, have now increased to approximately 811,981 BTC, with an additional 41,691 BTC purchased this year alone.

However, the price trend was the opposite. As of January 1, 2026, the average price of Bitcoin was around $88,110, and the value of IBIT's holdings at that time was estimated at approximately $67.9 billion. Currently, the nominal value has decreased by $4.3 billion to approximately $63.6 billion, and the price of Bitcoin has also fallen by more than 11% compared to the beginning of the year. Despite this, institutional funds are not withdrawing; instead, they continue to accumulate.

This trend suggests that institutional investors are focusing on long-term strategies rather than short-term prices. Indeed, IBIT investors, including BlackRock, are consistently increasing their holdings in a bear market, accumulating Bitcoin as a long-term asset.

On the supply side, changes are evident. According to CryptoQuant data, the amount of Bitcoin held on exchanges has decreased by 3.26% from approximately 2.76 million BTC at the beginning of the year to about 2.67 million BTC currently. This means that the amount of Bitcoin actually available for trading in the market is decreasing, which could lead to upward price pressure if demand is sustained.

Ultimately, the key is 'supply reduction.' If BlackRock's continuous accumulation aligns with the decrease in exchange holdings, the Bitcoin market is highly likely to approach a structurally undersupplied state. The prospect that the current bearish trend could turn into a sharp rebound if institutional buying continues is also gaining traction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*