BlackRock transfers $276M in BTC and $83M in ETH to Coinbase amid market downturn, sparking concerns of further crypto sell-offs.
In a significant development, BlackRock has just moved 3,064 BTC, valued at $276 million, and 26,723 ETH, worth $83 million, to Coinbase.
This transfer comes as the cryptocurrency market faces a downturn, with Bitcoin and Ethereum both experiencing price declines. The move has raised questions about BlackRock’s intentions and its potential impact on the market.
BlackRock’s Recent Crypto Transfer
BlackRock’s decision to move such large amounts of Bitcoin and Ethereum has drawn attention from the crypto community.
According to data from Arkham, the deposits into Coinbase include 3,064 BTC and 26,723 ETH, totaling over $350 million. The timing of this move, during a market downturn, has led many to speculate that BlackRock could be preparing to sell these assets.
This transfer follows a day of significant outflows from both Bitcoin and Ethereum exchange-traded funds (ETFs). On January 7, Bitcoin ETFs saw outflows of $480 million, while Ethereum ETFs experienced $98.45 million in outflows.
These movements suggest that investors may be retreating from cryptocurrencies amid the current market conditions.
As one of the largest institutional investors, BlackRock’s actions often influence the broader market.
Its decision to transfer such large amounts of cryptocurrency into Coinbase has left many wondering if the firm plans to liquidate its positions.
If BlackRock does decide to sell, it could contribute to further downward pressure on crypto prices.
Market Reaction and Growing Concerns
The crypto market has reacted with caution following BlackRock’s move. Bitcoin’s price has dropped below $90,000 after peaking above $94,000 earlier this week.
Many traders are now concerned that further market declines could be ahead, especially with institutional players like BlackRock potentially selling off their crypto holdings.
Additionally, the outflows from Bitcoin and Ethereum ETFs have added to the uncertainty in the market.
Some traders have expressed frustration online, suggesting that major investors do not want Bitcoin prices to rise higher.
This sentiment is shared by many, as they hope for a market recovery but fear that institutional actions may hinder growth.
As prices continue to decline, smaller investors are particularly worried about the potential impact of large institutional moves.
With Bitcoin and Ethereum already facing significant drops, the market is on edge, unsure of what the future holds. Traders are anxiously watching to see whether these trends will continue in the coming days.
Related Reading: Jupiter Launches JupUSD Stablecoin Backed by BlackRock
The U.S. Economic Data’s Influence on Crypto
BlackRock’s crypto transfer also coincides with the release of key U.S. economic data.
Today, the U.S. initial jobless claims report is expected to show a slight increase, with claims rising to 210,000.
The jobless claims data is important as it provides insight into the health of the U.S. labor market, which can affect broader market sentiment.
In addition to the jobless claims, the upcoming nonfarm payrolls and unemployment rate data will likely influence investor decisions.
These reports, set for release tomorrow, could further affect both traditional financial markets and cryptocurrencies. If the data shows signs of economic weakness, it could lead to more volatility in the markets.
The Federal Reserve’s policy decisions are also a factor in this equation. A weak jobs report might make it more likely for the Fed to cut interest rates, which could affect investment decisions across various asset classes, including cryptocurrencies.
Many are hoping for a positive shift in the economic data, but uncertainty remains high
Source: https://www.livebitcoinnews.com/blackrock-dumps-276m-in-btc-and-83m-in-eth-amid-market-downturn/
