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Key Takeaways
- BlackRock moved approximately $361 million worth of Bitcoin and Ethereum to Coinbase Prime.
- While transfers to Coinbase Prime don’t automatically signal a sale, market observers fear the worst on social media.
- Analysts say Bitcoin is still consolidating between roughly $85,600 and $93,700.
Market observers grew uneasy on Monday after asset manager BlackRock transferred a large amount of Bitcoin (BTC) and Ethereum (ETH) to Coinbase Prime, sparking fears that the move could precede a “massive” sell-off in the market.
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BlackRock Moved Bitcoin and Ethereum — Why It Matters
Blockchain data showed that BlackRock deposited 3,743 Bitcoin and 7,204 Ethereum into Coinbase Prime, a platform typically used by institutional clients.
At current market prices, the Bitcoin transfer alone is worth about $339 million, while the Ethereum deposit is valued at roughly $22 million.
According to Lookonchain, the transfers were made from wallets associated with BlackRock’s spot Bitcoin and Ethereum exchange-traded funds (ETFs).
Large inflows to exchanges have historically heightened short-term volatility, as they raise the possibility of supply entering the market.
While deposits to Coinbase Prime do not always indicate an imminent sale, they are moves closely watched by traders, as they can sometimes be a prelude to a larger action.
BlackRock has not commented publicly on the transfers.
Traders React To BlackRock’s Bitcoin Transfer
Reaction on X was swift, with traders split between alarm and skepticism.
One user wrote that the move was “really scary,” adding that it “looks like something massive is coming.”
Another said the transfer “may mean nothing, but usually signals something big.”
A third X user noted that deposits to Coinbase Prime “don’t always mean selling.”
They questioned whether the move reflected rebalancing or “something bigger about to hit the market.”
ETFs Still ‘New’
In an interview with CNBC, BlackRock’s head of ETFs Jay Jacobs said Bitcoin ETF’s are still “early” in their life span, despite being housed in the firm for two years.
“It’s still so early,” Jacobs told the broadcaster.
“Many investors have still just been starting their educational journey around what is Bitcoin, and how might it fit in a portfolio .… We see this still being very early days for Bitcoin and Ethereum.”
BlackRock manages the iShares Bitcoin Trust ETF (IBIT) and the iShares Ethereum Trust ETF (ETHA).
IBIT has fallen over 3% over the past year, coinciding with a fall from Bitcoin’s highs in October.
“For many financial advisors, maybe they didn’t have access to crypto before, or weren’t able to buy IBIT before it was approved on their platforms,” Jacobs said.
Bitcoin Price Outlook
At the time of reporting , Bitcoin was trading at around $92,000.
In a recent report, CCN analyst Victor Olanrewaju said the price was stuck in a “broad consolidation range.”
“Looking at the technical picture again, the daily chart shows BTC has been stuck in a broad consolidation range since November, trading between $85,592 and $93,681,” he said.
Because the price continues to bounce within that band, Bitcoin “still lacks a clear directional bias,” he added.
Momentum also appears to be weakening, with BTC hovering near the 20-day exponential moving average after already falling below the 50-day EMA — a signal that short- and mid-term trend strength is fading.
“As a result, Bitcoin’s price is more likely to fluctuate sideways than break out,” he wrote, suggesting the recent rebound could prove to be a “dead cat bounce” until fresh liquidity enters the market.
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