BlackRock Transfers Bitcoin and Ethereum as ETF Outflows Weigh on Market

BlackRock, the world’s largest asset manager, transferred significant amounts of Bitcoin and Ethereum to Coinbase, a move that has raised market concerns.

On-chain data shows the firm transferred 1,134 BTC (about $101 million) and 7,255 ETH (around $22 million). These transfers likely mean BlackRock is preparing to sell, especially after heavy outflows from its crypto ETFs at the end of last year.

On December 31, Bitcoin ETFs recorded a net outflow of $348.1 million, while Ethereum ETFs saw $72.1 million leave the market. BlackRock’s own funds were among the biggest losers, with its Bitcoin ETF seeing $99 million in outflows and its Ethereum ETF losing about $21.5 million.

This shows that institutional investors are still pulling money out of crypto-related funds. The selling pressure has been building for some time. Bitcoin ETFs have seen outflows in eight of the last nine trading days, while Ethereum ETFs recorded outflows in five of the last six days.

Analysts warn that if these outflows continue, Bitcoin could fall below the important $90,000 level. A break below that level could open the door for a much deeper correction. Market nerves are also high because $2.2 billion worth of crypto options are expiring today.

Bitcoin Stabilizes Near $88K as Options Expiry Tests the Market

These options cover Bitcoin, Ethereum, XRP, and Solana. For Bitcoin, the key “max pain” level is around $88,000, which traders are watching closely. Despite these negatives, there are a few positive signs. Glassnode says there is still no strong new institutional demand, as ETF flows remain negative.

However, long-term Bitcoin holders have stopped selling. This has helped BTC bounce from around $88,300 to above $89,600. The total crypto market value has also climbed back above $3 trillion, with some altcoins posting solid gains.

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