BlackRock Bitcoin transfer to Coinbase raises market concerns

BlackRock transferred a significant amount of Bitcoin to cryptocurrency exchange Coinbase, raising concerns about potential selling pressure in the market, according to blockchain data.

Arkham Intelligence data shows BlackRock deposited 2,201 Bitcoin into Coinbase as the digital asset continues to trade below a key resistance level. The transfer follows an outflow recorded by BlackRock’s Bitcoin exchange-traded fund on December 26, according to fund flow data.

Bitcoin ETFs

Bitcoin ETFs have reportedly experienced a seven-day outflow streak. BlackRock deposited 6,174.39 Bitcoin the previous week, reportedly to facilitate share redemptions of its Bitcoin fund.

Bitcoin briefly broke above its resistance level on December 28 but declined following BlackRock’s transfer to Coinbase, according to price data.

Cryptocurrency analyst Martini stated that BlackRock was not the only entity creating selling pressure on the digital asset. The analyst alleged that Binance, Wintermute, Coinbase, and Fidelity also sold significant amounts of Bitcoin, collectively representing billions in value.

Cryptocurrency analyst Bull Theory reported price volatility over the weekend, with the price rising on Sunday before declining Monday morning, triggering liquidations of both short and long positions.

Bitcoin outperformed major assets including gold and the S&P 500 earlier in the year but has underperformed following declines in October.

Cryptocurrency analyst Kevin Capital stated on X that data indicators have become more favorable for Bitcoin, suggesting the asset could bottom against equity markets and gold in the coming weeks. The analyst indicated the assessment was based on data analysis.

Cryptocurrency analyst Ted Pillows predicted Bitcoin could rally, noting that long-term holders have stopped selling for the first time since July 2024, according to on-chain data.

At the time of reporting, Bitcoin was up slightly over the previous 24 hours.

Source: CoinGecko