The world’s largest asset manager, BlackRock, has once again deposited Bitcoin (BC) worth $383,900,000 to Coinbase Prime. As spotted by on-chain tracking platform Lookonchain, the asset manager also moved about $122 million worth of Ethereum (ETH).
BlackRock’s recurring Bitcoin transfers stir concern
Notably, Coinbase Prime handles crypto assets from institutional investors, either for trading or storage. Hence, the large volume of Bitcoin that BlackRock has been depositing on Coinbase has triggered sell-off speculations.
Some market participants are wondering if the largest asset manager is aware of a development that retail traders have yet to catch on to. They assume that BlackRock is preparing to dump a sizable amount of the flagship crypto asset on the market.
BlackRock has not made any sell move yet, and the deposits on Coinbase Prime might be custodial or operational movement. Asset managers have been known to move Bitcoin for custody, audits or liquidity management.
Although no specific action has been taken with regards to the Bitcoin move, market participants are keenly monitoring developments. Such a large transfer by BlackRock is capable of influencing broader market sentiment.
Given the volatility of the crypto market in October, catalyzed by macroeconomic tensions, investors are cautious. The repeated deposits could trigger a potential sell pressure on BTC and cause prices to drop.
As U.Today reported, BlackRock, exactly 10 days ago, made a similar deposit of 2,854 BTC valued at approximately $314 million to the exchange. Understandably, the frequency is concerning to investors who are trying to figure out if there is a pattern to the asset manager’s moves.
Traders Brace for Liquidations as Bitcoin Eyes $112,600
Despite the concerns, Bitcoin has surged by 2.05% in the last 24 hours and exchanges hands at $110,564.53. The coin reached the $110,000 resistance after climbing from a daily low of $106,376.69 within the time frame.
However, trading volume has not enjoyed the same uptick as Bitcoin’s price. The asset’s trading volume is currently down by 17.37% at $63.91 billion.
BlackRock’s movement of a significant volume of Bitcoin several times in October alone to Coinbase Prime appears to have slowed the interest of market participants in accumulating the coin. Perhaps, they anticipate further decline in the price outlook.
Interestingly, the Bitcoin market could witness massive liquidation if the price climbs further to $112,600. Data shows that most short-position traders might suffer severe liquidation if ecosystem bulls drive prices higher.
As the volatile month of October gradually rolls out, traders are keen on seeing what November has to offer in terms of price outlook for Bitcoin.
Source: https://u.today/383900000-in-bitcoin-stun-coinbase-what-is-blackrock-up-to
