BlackRock has deposited 5,100 BTC worth $441.88M and 30,280 ETH worth $71.85M in a series of transactions into Coinbase Prime. The transactions have sparked liquidation concerns among investors and crypto traders.
BlackRock’s Bitcoin investment firm iShares Bitcoin Trust ETF (IBIT) has transferred Bitcoin and Ethereum in bulk to Coinbase Prime. The transactions are part of a worrying trend that has been going on for some time. Onchain activity shows the Fund has previously executed similar transactions leading to outflows from the ETF.
BlackRock sends Bitcoin and Ethereum in bulk to Coinbase Prime
Just in: BlackRock (@BlackRock) has deposited 5,100 $BTC worth $441.88M and 30,280 $ETH worth $71.85M into #Coinbase Prime, in the past 30 mins.https://t.co/pyOLoPpL7H pic.twitter.com/vBQahg46vD
— Onchain Lens (@OnchainLens) February 27, 2025
According to data from blockchain analysis platform Onchain Lens, the Fund deposited 5,100 BTC worth $441.88M and 30,280 ETH worth $71.85M on the full-service prime institutional brokerage platform.Â
The fund transfer has left many confused if it signals a strategic shift, routine liquidity management, or potential selling pressure. However, the transactions coincide with the ongoing liquidation trend observed in the U.S. Bitcoin and Ethereum Exchange Traded Funds.
According to data from Farside Investors, BlackRock’s IBIT experienced the largest single-day outflows on 26th February. The data shows that IBIT cashed out $418.1 million after selling 5,002 Bitcoin. The transaction marked the third-day streak of negative flows that began on 24th February.Â
On 25 February, Arkham reported that BlackRock transferred Bitcoin worth $150 million to Coinbase Prime as part of the day’s outflows from the investment firm’s IBIT Bitcoin ETF. An X user reacted to the news, saying that people started regretting letting BlackRock control the market. The user also emphasized that Bitcoin lost its ethos.
Another user added that IBIT has the right to liquidate its Bitcoin holdings and that the Fund has no option but to sell its crypto assets if shareholders sell. A different user gave a similar opinion, saying that BlackRock is not selling or buying anything, but its clients are.
According to CoinMarketCap, Bitcoin has shed close to 12% in the last seven days and 1.32% in the last 24 hours. The crypto asset is down 21.19% from its all-time high price of $109,114 recorded on January 20th after Trump assumed office as the U.S. president. Bitcoin is currently trading at $85,798 as of this writing. The 12.6% drop observed in the first three days of the week marks the largest decline since the FTX bankruptcy in November 2022. A large number of investors are panic selling.
The Crypto fear and greed index shows investors are extremely fearful
The Bitcoin fear and greed index from Alternative has dropped to 10, representing the overall mood of the market as Extremely Fearful. The low figures indicate the current market sentiment remains bearish as more traders exhibit fear over greed. The figure has now dropped to 10, even lower than the one registered during the FTX collapse in November 2022.
The crypto market is sensitive to macroeconomic factors and has been shaken by the ongoing economic uncertainties around President Trump’s policies and proposals. Trump’s latest economic policies revolve around imposing tariffs on other countries, such as Canada and Mexico, and new restrictions on Chinese stakes in important sectors. The uncertainties have triggered a widespread risk-off market sentiment that has caused investors to pull out of riskier investment vehicles such as Bitcoin.Â
Despite the ongoing meltdown in the crypto industry, experts such as Anthony Pompliano believe the crypto asset could surge by 10X. In an interview with CNBC, the Founder and CEO of Professional Capital Management said the ongoing meltdown is a temporary correction that could pave the way for a 10X surge.Â
During the interview, Pompliano explained that Bitcoin is sensitive to global liquidity and that the U.S.’s work on lowering interest rates to weaken the dollar will benefit Bitcoin.
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