Is BlackRock Preparing for Bitcoin Sell-Off? 1,800 BTC Transfer Stirs Debate

Investment manager BlackRock has transferred 1,800 Bitcoin (BTC), valued at approximately $160 million, to Coinbase Prime.

The transaction has raised concerns about whether it signals a strategic shift, routine liquidity management, or potential selling pressure.

BlackRock’s Bitcoin Transfer Raises Questions

Arkham Intelligence, a blockchain analytics firm, first brought attention to the transfer in a post on X.

“BlackRock Selling BTC,” the post read.

The message quickly fueled discussions within the crypto community, with many interpreting the move as a potential signal of BlackRock offloading Bitcoin. 

“People start regretting letting Blackrock control the market. Bitcoin lost its ethos,” a user wrote on X.

Yet, a closer look suggests a less dramatic explanation. The transfer is linked to BlackRock’s management of its iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF custodied by Coinbase Prime. Thus, the movement of 1,800 BTC could probably reflect liquidity management, portfolio rebalancing, or efforts to facilitate investor redemptions rather than an outright sale. 

Notably, the timing of this transfer coincides with significant outflows from the ETF. According to SoSoValue, on February 25, IBIT saw $164 million in net outflows. These investor withdrawals may explain the need for liquidity adjustments.

Meanwhile, the Bitcoin transfer isn’t the only activity from BlackRock that is catching attention. Data from Arkham Intelligence revealed that BlackRock’s iShares Ethereum Trust ETF (ETHA) also deposited 18,168 ETH, worth approximately $44 million, to Coinbase Prime amid comparable outflows from the ETF.

Bitcoin Dips Below $90,000 Amid Broader Sell-Off

The transfers coincide with a turbulent period for the cryptocurrency market. Bitcoin recently fell below $90,000 for the first time since November 2024, dragged down by a sell-off in US Bitcoin ETFs. These funds have recorded substantial outflows, ending the last two weeks in the red.

At press time, Bitcoin traded at $88,659, down 3.0% in the past 24 hours. The Fear and Greed Index stood at 21, indicating extreme fear in the market. This suggested that investors are highly cautious, potentially panicking and selling off their assets due to uncertainty or recent price declines. 

Bitcoin Price Performance. Source: BeInCrypto

The broader crypto market has also been under heavy pressure. According to CoinGlass, over $1 billion in leveraged positions were wiped out in the past day. 

Of this total, a staggering $847 million came from liquidated long positions—traders betting on price increases. Meanwhile, only $191 million stemmed from short liquidations, where traders betting on price declines were forced out of their positions.

The scale of these liquidations is raising concerns that the market may be entering a bearish phase, with increased volatility and further downside risk for Bitcoin and other cryptocurrencies.

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