BlackRock, the world’s largest spot Bitcoin ETF provider, has become a focal point in the crypto community due to its recent Bitcoin selling spree. According to on-chain analytics platform Arkham, BlackRock has shifted gears, moving from accumulation to liquidation, raising alarms about its impact on market sentiment.
BlackRock’s Selling Spree: $12.4M Bitcoin Sold
Arkham’s report revealed that BlackRock sold 124 BTC, worth approximately $12.4 million, on January 8, following earlier significant transactions. The firm’s net Bitcoin holdings have reportedly dropped by $3 million since January 7, now standing at $56.4 billion. This activity follows a December transfer of $188.7 million worth of Bitcoin to Coinbase by BlackRock’s IBIT ETF Trust, marking the largest sale by the asset manager to date.
The selloff coincided with Bitcoin’s price dipping to $91,380 before rebounding to its current level of $95,000. However, analysts warn that BlackRock’s continued liquidation could amplify bearish sentiments, potentially destabilizing the market further. Some speculate that this could be a profit-taking strategy ahead of a potential market peak, while others suggest the firm might be setting the stage for buying during a future dip.
Market Implications
Bitcoin‘s recent all-time high of $108,200 was fueled by spot ETF inflows and bullish sentiments surrounding Donald Trump’s anticipated inauguration on January 20. However, BlackRock’s unexpected selling spree has injected uncertainty into an already volatile market.
Adding to the mix is the possibility of an expanded Global M2 money supply, which could trigger a series of Bitcoin price recoveries. Analysts remain divided on whether BlackRock’s actions signal short-term bearishness or a calculated move to capitalize on future dips.
What’s Next for Bitcoin?
The market faces a critical juncture, with BlackRock’s strategies, macroeconomic factors, and political events all influencing Bitcoin’s trajectory. Despite current volatility, long-term projections remain optimistic. The New Quantile model predicts Bitcoin could reach $1 million by 2034, underscoring its enduring potential as a digital asset.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bitcoin ETFs See $900M+ Inflows as Demand Surges: BlackRock, Fidelity Lead the Charge
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