Is BlackRock Preparing To Sell $1.8B Worth BTC?

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As a seasoned analyst with over two decades of experience in the financial markets, I have witnessed numerous events that have shaped the trajectory of various assets. The recent news about Blackrock’s Bitcoin holdings and potential selling has piqued my interest, given its significant influence on the market.

Blackrock, a prominent financial firm, appears to have developed a growing affection towards Bitcoin, with substantial BTC holdings under its management. Moreover, it has advocated that up to 2% of an investor’s overall portfolio should be dedicated to this digital asset. However, a recent event has sparked concerns about potential sales from Blackrock, which could destabilize the crypto market given its significant holdings in the sector.

BlackRock Transferred $1.88B To New Wallets

The provider of IBIT ETF holds approximately 2.6% of all existing Bitcoins, amounting to about 553,162 units. Notably, this company purchased a billion dollars’ worth of Bitcoin during a recent market downturn. However, its recent Bitcoin transactions are raising eyebrows due to the fact that it has moved billions of dollars’ worth of Bitcoin to Coinbase, which is one of the leading cryptocurrency exchanges globally.

According to Arkham intelligence findings, Blackrock transferred $1.88B worth of BTC on December 26. The transfer happened through multiple transactions to Coinbase wallets, which brought everyone’s attention to transfers. Although the funds are still there, it is uncertain whether the digital asset manager will sell them or keep them there. More importantly, the firm has recently divided all its BTC holdings into 29 wallets, so transferring to a new wallet suddenly gives a hint of upcoming selling.

Regardless, it has $ 56.5B worth of assets, of which Bitcoin is responsible for $52.98B. At the same time, the IBIT ETF is overcoming outflows, which could eventually affect the Bitcoin price. However, yesterday’s inflows helped reduce the impact of earlier outflows, so now the question is only about the investment firm’s possible selling.

Crypto Analysts Analyzed The BlackRock’s Potential BTC Sell

It’s unclear why this Bitcoin transfer took place, but some experts suggest two possible motives: either to lock in profits by selling later or to influence the cryptocurrency market.

Bitcoin has faced challenges following the Federal Reserve’s 25 basis points rate cut announcement. This led to a plunge in Bitcoin’s price down to approximately $92,000, but it has since rebounded to its current level of $96,000. However, its all-time high remains at $108,200. The present moment is pivotal for Bitcoin, and the decision made by this investment company could significantly impact the value of the token.

Atlas, a cryptocurrency analyst, asserts that should Blackrock attempt to manipulate the crypto market by selling Bitcoin, it wouldn’t be overly significant because they tried a similar strategy just a few days prior. He posits that the market would recover its vigor much like it did previously. Moreover, given the fixed profit standpoint, such an action is fairly standard, as data indicates that the company purchases Bitcoin at an average of around $50-60k, thus they have already doubled their investment. However, if Blackrock were to sell just half of their total Bitcoin holdings, it could trigger a widespread sell-off, potentially leading to either a bear market or altcoin season.

A significant bear market may occur due to Blackrock’s substantial influence, which is believed to be around 2-3 times that of Mt Gox and Germany combined. This influence stems from Blackrock’s potential sell-off, which could instill fear among investors, leading to a decrease in the bitcoin price and trading volume. Conversely, if investors are pushed towards altcoins due to Bitcoin selling, it might trigger an ‘altcoin season’.

Will Bitcoin Price Drop To $60K?

The selling pressure has surrounded Bitcoin from all directions ever since it failed to hold the $100k support on Christmas. An earlier CoinGape report clarified this further as the BTC on-chain data shows weakness, restricting its rally.

Essentially, it’s crucial to note that Bitcoin is currently situated in a significant area, ranging from approximately $97,041 to $93,806. If it fails to maintain its current demand, there’s a potential for the price to fall to around $70,000. Furthermore, with over $14 billion worth of Bitcoin options expiring today, additional price fluctuations might occur.

It’s worth noting that several experts anticipate a potential drop in Bitcoin’s value to approximately $60,000, around the time of Donald Trump’s inauguration. If Blackrock decides to sell Bitcoin, this could significantly influence the outcome, making such a price crash more likely.

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2024-12-27 15:34