BlackRock has moved a notable quantity of Bitcoin to the cryptocurrency exchange Coinbase, which has sparked worries about possible selling pressure in the market, based on blockchain analytics.
Summary
- BlackRock moved 2,201 BTC to Coinbase, raising concerns about selling pressure as Bitcoin ETFs experienced a week of outflows and BTC struggled to maintain critical resistance.
- Market volatility has escalated, with analysts suggesting that potential selling from large entities and price fluctuations over the weekend caused liquidations on both sides of the market.
- Mixed signals are emerging, with some analysts cautioning about further declines while others point to improving data metrics and on-chain signs indicating long-term holders have ceased selling.
Arkham Intelligence data indicates that BlackRock deposited 2,201 Bitcoin into Coinbase while the digital asset continues to trade below an important resistance level. This transfer follows an outflow logged by BlackRock’s Bitcoin exchange-traded fund on December 26, as per fund flow data.
Bitcoin ETFs
Bitcoin ETFs have reportedly seen a week-long streak of outflows. Last week, BlackRock deposited 6,174.39 Bitcoin, reportedly to manage share redemptions of its Bitcoin fund.
Bitcoin briefly surpassed its resistance level on December 28 but subsequently fell after BlackRock’s transfer to Coinbase, according to price analyses.
Cryptocurrency analyst Martini remarked that BlackRock wasn’t the only entity exerting selling pressure on the digital asset. The analyst claimed that Binance, Wintermute, Coinbase, and Fidelity also sold considerable amounts of Bitcoin, collectively worth billions.
Analyst Bull Theory reported price volatility over the weekend, noting a rise in price on Sunday before a drop on Monday morning, resulting in liquidations across both short and long positions.
Bitcoin outperformed major assets like gold and the S&P 500 earlier this year but has lagged following declines in October.
Analyst Kevin Capital noted on X that data indicators are becoming more favorable for Bitcoin, suggesting the asset might find a bottom against equity markets and gold in the weeks ahead, based on data analysis.
Analyst Ted Pillows predicted that Bitcoin could see a rally, indicating that long-term holders have halted selling for the first time since July 2024, according to on-chain data.
At the time of this report, Bitcoin had seen a slight increase over the prior 24 hours.
