Will Bitcoin Prices Decline Today? BlackRock’s BTC Transactions Rattle the Market

In a significant move that is raising eyebrows in the cryptocurrency community, BlackRock has transferred a large quantity of Bitcoin (BTC) to the exchange Coinbase. This action is occurring at a time when Bitcoin is finding it challenging to maintain its price above $90,000.

Key Takeaways

BlackRock recently deposited 2,201 BTC into Coinbase, raising concerns about a potential sell-off.
A net outflow of $275.88 million in Bitcoin ETFs has contributed to market pressure.
Bitcoin's price briefly surpassed $90,000 before dropping back after the transfer.
Analysts suggest that Bitcoin may find new support levels against major assets like gold and equities.
Currently, Bitcoin is trading at approximately $87,300, down over 3% in the past day.

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Risk of Bitcoin Price Decline with BlackRock's Recent Transfers

Recent data from Arkham indicates that BlackRock has deposited 2,201 BTC, valued at approximately $192.13 million, into Coinbase. This transfer has sparked fears that the Bitcoin price may face further declines due to increased selling pressure. This shift follows BlackRock’s BTC ETF experiencing a net outflow of $275.88 million on December 26, contributing to a broader trend of Bitcoin ETFs witnessing outflows over the past week.

In fact, these Bitcoin ETFs have been on a seven-day outflow streak, leading BlackRock to deposit an additional 6,174.39 BTC the previous week. This suggests that the company is preparing to offload these coins to redeem shares in its Bitcoin fund. Despite an earlier rally above the $90,000 mark on December 28, the price quickly fell back as BlackRock transferred the assets to Coinbase.

Notably, crypto analyst Martini has pointed out that BlackRock is not the only entity exerting considerable selling pressure on Bitcoin. He mentions that Binance, Wintermute, Coinbase, and Fidelity collectively sold about $3.5 billion worth of BTC yesterday.

Meanwhile, Bull Theory, another crypto analyst, raised concerns about potential market manipulation. He noted a $3,000 spike in Bitcoin's price that liquidated $103 million in short positions over the weekend, followed by a dramatic drop of $2,700 on Monday morning, which liquidated another $40 million in long positions. This volatility has left Bitcoin with a negative outlook for a yearly close, with a current decline of over 6% year-to-date (YTD).

Bitcoin May Reach a Support Level Against Other Major Assets

In a recent post on X, crypto analyst Kevin Capital suggested that conditions are becoming more favorable for Bitcoin. He predicts that BTC may find a bottom against key assets like equities and gold in the near future, with the potential for Bitcoin to outshine these traditional investments. His insights are based purely on factual data rather than emotional responses.

Initially, Bitcoin outperformed major assets at the beginning of the year, but its momentum has slowed following the market crash on October 10. In contrast, gold has risen by 66% YTD, while the S&P 500 has increased by 17% since January. Fellow analyst Ted Pillows has also posited that Bitcoin might soon experience a rally, as long-term holders have ceased selling for the first time since July 2025.

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Source: Chart from Ted Pillows on X

As of now, Bitcoin is trading around $87,300, reflecting a decline of over 3% in the past 24 hours, based on data from CoinMarketCap.

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BTC trading at $87,915 on the 1D chart | Source: BTCUSDT on Tradingview.com