How Big Banks and Central Bank Drama Are Shaping Bitcoin’s Bull Market
Bitcoin is quietly gaining strength while powerful players and central banks orchestrate moves behind the scenes. In this article, we unpack BlackRock’s role, the Federal Reserve’s distractions, and why major institutions could be driving Bitcoin’s next surge. You’ll get clear insights on market dynamics, regulatory shifts, and what savvy investors need to watch now.
Bitcoin’s Bull Market: Why Most Investors Miss the Bigger Picture
While gold and silver make headlines, Bitcoin is quietly climbing toward $96,000. Few realize this isn’t just a retail frenzy: major banks are quietly accumulating Bitcoin and Ether. Crypto “tourists”—short-term holders—are vanishing, replaced by institutional buying. This setup favors a lasting bull run, despite skeptics calling it over.
Investor takeaway: The shift from retail to institutional holding signals strength. When banks buy big and hold, the market tightens, potentially sparking big price moves ahead.
What’s Really Happening with BlackRock and Crypto ETFs?
BlackRock’s clients recently withdrew about $150 million from Bitcoin and Ether ETFs, sparking headlines of an exodus. But here’s the twist: BlackRock itself isn’t dumping crypto. Instead, large banks keep buying Bitcoin and Ether aggressively.
This distinction matters. BlackRock clients pulling out could be retail or cautious investors, while the firm and other financial giants position for long-term gains. The likely strategy? Push prices higher to make Bitcoin unaffordable for casual speculators. Then, investors might turn to riskier altcoins or meme tokens, leaving the “blue chips” like BTC and ETH in the hands of institutions.
Answer Box
Is BlackRock selling Bitcoin?
No. While some clients withdrew from Bitcoin ETFs, BlackRock itself is holding or buying more Bitcoin and Ether, reflecting a belief in these assets’ long-term value.
Jerome Powell, the Fed, and the Real Distraction
Recent uproar over the Federal Reserve spending $2.8 billion on building renovations is a classic distraction. The Federal Reserve prints vastly more money daily through quantitative easing—far outweighing renovation expenses.
Former President Trump criticized Fed Chair Jerome Powell, and some commentators call Powell “the jerk,” but this political theater obscures deeper truths about the Fed’s power and role.
Eric Voorhees, a respected crypto veteran, nails it: The Fed’s independence is a myth. It’s an extension of the banking industry, controlling money markets with near-monopoly power. Its worst offense isn’t renovations but decades of distorting interest rates and currency value.
Investor takeaway: Don’t get distracted by surface controversies. Understand the Federal Reserve’s real influence—manipulating money supply and interest rates affects every asset, including Bitcoin.
Central Banks’ Moves Hint at a USD Devaluation Play
Bank of America recently signaled that investigations into Jerome Powell might delay interest rate changes. This could pave the way for lowering rates, which tends to devalue the US dollar.
Why does this matter? A weaker dollar often drives investors to hard assets like gold and Bitcoin to preserve wealth. Central banks may be paving a path toward a digital dollar, also known as a central bank digital currency (CBDC), which could further disrupt the crypto landscape.
Data callout:
The US national debt’s annual interest cost is hundreds of billions of dollars. This burden trickles down to taxpayers through taxes, emphasizing why the Fed’s policies and dollar stability are of paramount importance to investors.
The Global Crypto Scene: China and Russia Step Up
Despite US tariffs, China posted a record $1.2 trillion trade surplus in 2025, highlighting the limits of tariffs and the economic impact on ordinary citizens.
Meanwhile, Russia is going bullish on crypto. New legislation enables ordinary investors to legally buy up to about $3,800 worth of crypto annually, with no limits on professional investors. This layered regulation creates barriers for regular people, likely aimed at restricting widespread Bitcoin adoption.
Investor takeaway: Governments worldwide are juggling control and adoption. Understanding these regulatory moves helps anticipate shifts in crypto demand and supply.
Risks: What Could Go Wrong with Bitcoin Now?
- Regulatory Crackdowns: New laws can restrict Bitcoin purchases and transfers, limiting mass adoption.
- Central Bank Digital Currencies: CBDCs could compete with Bitcoin by offering government-backed digital money.
- Market Manipulation: Institutional control might lead to artificial price inflation followed by sharp corrections.
- Economic Instability: Sudden moves in interest rates or economic policy could disrupt crypto markets unexpectedly.
Stay vigilant but remember: Bitcoin’s limited supply and decentralization create a unique hedge in a turbulent financial world.
Summary: Key Takeaways for Investors
- Major banks like BlackRock are accumulating Bitcoin and Ether, signaling institutional confidence.
- Client withdrawals from ETFs may reflect retail caution, not BlackRock’s strategy.
- Federal Reserve drama distracts from its real power: manipulating the economy’s money supply.
- US dollar weakening could fuel Bitcoin’s rise as a hard, capped asset.
- Global regulatory trends show mixed signals but reveal barriers aimed at limiting ordinary adoption.
Explore these themes deeper with Wolfy Wealth PRO, where we deliver timely analysis, model portfolios, and clear risk management strategies tailored for crypto investors ready to act.
Frequently Asked Questions
Q: Is the crypto bull market still alive?
A: Yes. Institutional buying and reduced retail selling suggest the bull market persists despite price volatility.
Q: Why is BlackRock important in Bitcoin’s price?
A: BlackRock’s actions often set market trends. Their continued holding indicates belief in Bitcoin’s future, influencing others.
Q: What’s the real impact of the Federal Reserve on crypto?
A: The Fed's monetary policies directly affect inflation and currency strength, which in turn impact crypto valuations.
Q: How do tariffs affect Bitcoin?
A: Tariffs can weaken the dollar and disrupt trade, often pushing investors toward hard assets like Bitcoin for protection.
Q: Can retail investors still buy significant amounts of Bitcoin in countries like Russia?
A: Russian regulations limit ordinary investors’ yearly crypto purchases, creating hurdles to large-scale adoption outside professionals.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry risk; always do your own research.
By Wolfy Wealth - Empowering crypto investors since 2016
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Disclosure: Authors may be crypto investors mentioned in this newsletter. Wolfy Wealth Crypto newsletter, does not represent an offer to trade securities or other financial instruments. Our analyses, information and investment strategies are for informational purposes only, in order to spread knowledge about the crypto market. Any investments in variable income may cause partial or total loss of the capital used. Therefore, the recipient of this newsletter should always develop their own analyses and investment strategies. In addition, any investment decisions should be based on the investor's risk profile
