BlackRock Transfers Over $650 Million in Crypto to Coinbase Prime

TLDR

• BlackRock has transferred over $650 million in Bitcoin and Ethereum to Coinbase Prime, raising concerns about a potential market sell-off.
• The transfers involved 4,880 BTC, valued at $467 million, and 54,730 Ether, valued at $176 million.
• The move follows a record outflow from BlackRock’s Bitcoin ETF, increasing speculation about liquidation risks.
• After the transfer, Bitcoin’s price dropped to around $94,000, marking a 10% weekly decline.
• Ethereum also weakened, dropping to $3,140 after a brief recovery earlier in the session.

BlackRock has transferred over $650 million in Bitcoin and Ethereum to Coinbase Prime, sparking concerns about a potential market sell-off. This move comes as the cryptocurrency market shows signs of decline, with Bitcoin falling below key support levels and Ethereum losing momentum. According to Lookonchain data, these transfers were made through BlackRock-related wallets, adding to concerns about liquidation risks.

BlackRock Bitcoin Transfer Triggers Market Sell-Off Concerns

BlackRock transferred 4,880 BTC, worth approximately $467 million, to Coinbase Prime via its Bitcoin ETF. This move happened within an hour, raising speculations about a possible sell-off. The timing of the transfer followed a record outflow from the BlackRock Bitcoin ETF, as market watchers noted a heavy sell-off.

Crypto analyst Ted Pillows commented on the situation, describing the transfer as an indication of further selling. “Institutions don’t send half a billion dollars in crypto to exchanges without a purpose,” he said. The transfer led to a sharp drop in Bitcoin’s price, which fell to around $94,000, marking a 10% weekly decline.

Bitcoin’s price dip followed closely on the heels of the BlackRock transaction, underscoring the market’s sensitivity to institutional activity. The transfer raised concerns about market liquidity, which has been thinning amid ongoing declines in major cryptocurrencies. The move was seen as a clear sign of bearish sentiment in the market.

Ethereum Sees $689M Outflows Amid Weakness

BlackRock also moved 54,730 Ether, valued at approximately $176 million, to Coinbase Prime through its Ethereum ETF. This significant transaction, like the Bitcoin transfer, has raised questions about the firm’s intentions. Many believe that these funds may be prepared for sale, especially as Ethereum showed weakness during the same period.

Ethereum’s price also took a hit after the transfer, dropping to around $3,140, a sharp decline from earlier highs. As Ethereum struggles with a lack of institutional confidence, this further reinforces concerns about the coin’s future. Ethereum’s weekly outflows accounted for 4% of its AUM, compared to Bitcoin’s 2%, signaling an even steeper loss of investor interest in ETH.

A series of large withdrawals from investment products compound Ethereum’s struggles. CoinShares data reveals that Ethereum saw $689 million in outflows last week alone. This marks the third consecutive week of losses for Ethereum, which now faces further headwinds.

BlackRock’s Bitcoin and Ethereum transfers occur amid thin liquidity and heightened market uncertainty. The crypto market has already been under pressure, with major exchanges experiencing a slowdown in trading volumes. The transfer of large amounts of cryptocurrency by a leading institutional player such as BlackRock could deepen a market downturn.

In contrast, firms like Strategy are taking a different approach, with Michael Saylor’s firm purchasing 8,178 BTC. This highlights the divergence in institutional sentiment regarding Bitcoin and Ethereum at this time. BlackRock’s actions, however, continue to dominate the market, and traders are closely watching for further developments.

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