BlackRock Purchases $289M in Bitcoin as ETF Inflows Reach Highest Level in Two Weeks

Key Takeaways

• BTC fell under $67,000 Thursday amid broader market risk-off sentiment
• Spot Bitcoin ETFs in the U.S. saw $506 million in net inflows, marking a two-week peak
• BlackRock accumulated approximately 4,309 BTC valued at $289.6 million in a single hour
• Close to 20,000 addresses now hold 100 BTC or more, signaling potential strength according to Santiment
• Persistent profit-taking continues to cap Bitcoin’s recovery efforts below $70,000

Bitcoin retreated beneath the $67,000 threshold Thursday following a robust Wednesday rally that pushed the cryptocurrency up more than 6%.

The decline mirrored broader weakness across Wall Street, where even Nvidia’s impressive earnings report couldn’t prevent a selloff in technology stocks. This risk-averse climate extended to speculative markets, dragging crypto assets lower.

At press time, Bitcoin was changing hands around $66,900, representing a roughly 1.6% decline over 24 hours based on TradingView data.

The previous day’s rally stemmed primarily from dip buyers stepping in after Bitcoin had tumbled nearly 50% from its October record high. A short squeeze intensified the move as bearish traders were forced to cover positions.

Coinglass data revealed that $468.7 million worth of short positions were liquidated within a 24-hour period.

Despite Thursday’s price weakness, institutional appetite strengthened considerably. U.S. spot Bitcoin ETFs registered $506.51 million in aggregate net inflows on February 25, marking the strongest daily performance in two weeks, per SoSoValue data.

ETF Demand Reaches Two-Week High

BlackRock’s IBIT dominated with $297.37 million in net inflows. Fidelity’s FBTC contributed $30.09 million, while Grayscale’s GBTC recorded $102.49 million. Bitwise’s BITB added $39.37 million to the total.

BlackRock executed a substantial direct acquisition on February 26, securing roughly 4,309 BTC worth about $289.6 million in just one hour. The transaction involved transfers from Coinbase Prime hot storage to IBIT custody wallets.

Eric Balchunas, Bloomberg’s ETF analyst, acknowledged the demand spike came at an opportune moment following weeks of persistent outflows, though he cautioned it’s premature to determine whether this signals a durable trend reversal or merely temporary buying interest.

Large Holder Distribution Suggests Positive Momentum

Analytics platform Santiment highlighted that 19,993 distinct wallets were holding 100 BTC or more as of Thursday, falling just seven addresses short of the 20,000 benchmark.

On-chain analytics provider Glassnode observed that profit-taking activity has prevented each attempted rally below $70,000 throughout February.

The Coinmarketcap fear and greed index registered “extreme fear” as of Thursday, holding steady from earlier in the week.

Bitcoin has declined approximately 24.59% over the past 30 days and remains roughly 47% below its October all-time high.

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