BlackRock’s recent Bitcoin transfer has ignited intense debate within the crypto community, raising concerns over whether it signals a strategic shift, routine liquidity management, or looming selling pressure.
BlackRock’s BTC Move Under Scrutiny
Arkham Intelligence, a blockchain analytics firm, first flagged the transaction in a post on X, stating, “BlackRock Selling BTC.” This immediately fueled speculation that the asset management giant was offloading Bitcoin, with some users lamenting the perceived influence BlackRock holds over the market.
“People start regretting letting BlackRock control the market. Bitcoin lost its ethos,” one user wrote on X.
ALERT: BLACKROCK SELLING $BTC
— Arkham (@arkham) February 25, 2025
BlackRock has transferred $150M BTC to Coinbase Prime. These are outflows from the IBIT Bitcoin ETF. pic.twitter.com/GoruDylqdk
However, deeper analysis suggests the move may be less alarming than it initially seemed. The transaction is linked to BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF custodied by Coinbase Prime. The transfer of 1,800 BTC likely reflects liquidity management, portfolio rebalancing, or investor redemptions rather than an outright sell-off.
ETF Outflows Could Explain the Move
Significantly, this transfer coincided with major outflows from IBIT. According to SoSoValue, the ETF saw $164 million in net outflows on February 25. The withdrawals may have necessitated adjustments in Bitcoin holdings to maintain liquidity.
BlackRock’s activity was not limited to Bitcoin. Arkham Intelligence data also revealed that the firm’s iShares Ethereum Trust ETF (ETHA) deposited 18,168 ETH (worth approximately $44 million) to Coinbase Prime, mirroring the Bitcoin transaction and indicating broader ETF-related adjustments.
Bitcoin Slumps Below $90,000 Amid Broader Sell-Off
The transfers come amid heightened market turbulence. Bitcoin recently dropped below $90,000 for the first time since November 2024, weighed down by significant sell-offs in U.S. Bitcoin ETFs. As of press time, Bitcoin traded at $88,659, down 3.0% in 24 hours. The Fear and Greed Index registered 21, reflecting extreme fear in the market.
Meanwhile, according to CoinGlass, over $1 billion in leveraged positions were liquidated in the past day, with $847 million wiped from long positions. This suggests increasing bearish sentiment and heightened volatility, raising concerns over Bitcoin’s near-term outlook.
While BlackRock’s Bitcoin transfer may have initially spurred panic, the evidence suggests it was a routine liquidity maneuver rather than a deliberate market exit. However, combined with broader sell-offs and ETF outflows, the move underscores the fragile state of the current crypto market.
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.
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