Blackrock, an investment management company, transferred approximately 1,800 Bits (BTC) worth about $16 million to Coinbase Prime in the early morning of the 26th.
This transaction has raised concerns about whether it indicates strategic changes, routine liquidity management, or potential selling pressure.
Blackrock's Bitcoin Movement... Raising Questions
Arkham Intelligence, a blockchain analysis firm, first noted this transfer in a post on X.
The post stated, "Blackrock is selling BTC."
This message quickly sparked discussion within the cryptocurrency community, and many interpreted it as a signal that Blackrock is selling Bitcoin.
One user wrote on X, "People are starting to regret allowing Blackrock to control the market. Bitcoin has lost its essence."
However, a closer look reveals a less dramatic explanation. This transfer is related to Blackrock's management of the iShares Bitcoin Trust (IBIT), which is a physically-backed Bitcoin ETF held by Coinbase Prime. Therefore, the movement of 1,800 BTC is likely an effort to manage liquidity, rebalance the portfolio, or facilitate investor redemptions.
Notably, the timing of this transfer coincides with significant outflows from the ETF. According to SoSoValue, on February 25th, IBIT recorded a net outflow of $164 million. These investor withdrawals may explain the need for liquidity adjustments.
Meanwhile, Bitcoin transfers are not the only activity drawing attention to Blackrock. Arkham Intelligence's data shows that Blackrock's iShares Ethereum Trust ETF (ETHA) also deposited 18,168 ETH worth approximately $44 million into Coinbase Prime, amid similar ETF outflows.
Bitcoin Falls Below $90,000... Overall Selling Pressure
This transfer coincides with a turbulent period in the cryptocurrency market. Bitcoin recently fell below $90,000 for the first time since November 2024. This was driven by selling pressure in US Bitcoin ETFs, which have recorded significant outflows and ended the past two weeks in the red.
At the time of reporting, Bitcoin was trading at $88,659, down 3.0% in the last 24 hours. The Fear and Greed Index stood at 21, indicating extreme fear in the market. This suggests that investors are highly cautious and may be inclined to sell their assets due to uncertainty or recent price declines.
The broader cryptocurrency market is also under significant pressure. According to Coinglass, over $1 billion in leveraged positions were liquidated in the past day.
Surprisingly, $847 million of this total came from the liquidation of long positions, which were held by traders expecting price increases. In contrast, only $191 million came from the liquidation of short positions, which were held by traders betting on price declines.
The scale of these liquidations suggests that the market is entering a downward phase, with increased volatility and potential for further downside risks in Bitcoin and other cryptocurrencies.
