Blackrock has found a new love for Bitcoin, as the firm holds massive BTC holdings. Not that only, it has also advised others to allot 2% of their total portfolio to this digital asset. However, a recent incident raised suspicions about possible selling for the investment firm, which could crash the crypto market due to its high holdings. BlackRock Transferred $1.88B To New Wallets The IBIT ETF provider owns around 2.6% of the total Bitcoin supply, bringing its holdings to 553.162k BTC. Interestingly, the firm bought $1B worth of BTC during the recent dip. Still, its recent Bitcoin transfers are concerning, as it has transferred billions of BTC to Coinbase, one of the most prominent in the top crypto exchanges list. According to Arkham intelligence findings , Blackrock transferred $1.88B worth of BTC on December 26. The transfer happened through multiple transactions to Coinbase wallets, which brought everyone’s attention to transfers. Although the funds are still there, it is uncertain whether the digital asset manager will sell them or keep them there. More importantly, the firm has recently divided all its BTC holdings into 29 wallets, so transferring to a new wallet suddenly gives a hint of upcoming selling. Regardless, it has $ 56.5B worth of assets, of which Bitcoin is responsible for $52.98B. At the same time, the IBIT ETF is overcoming outflows , which could eventually affect the Bitcoin price. However, yesterday’s inflows helped reduce the impact of earlier outflows, so now the question is only about the investment firm’s possible selling. Crypto Analysts Analyzed The BlackRock’s Potential BTC Sell Although there is no clear explanation behind this BTC transfer, a few analysts have analyzed the scenario and concluded two reasons. According to analysts, these transfers must have been made for future sales to fix the profit or to manipulate the crypto market. Bitcoin has been struggling since the FED’s 25 bps rate cut decision . With that, the BTC price collapsed to $92k before making a recovery, currently trading at $96k, but ATH sits at $108.2k. The present time is quite crucial for BTC, and this investment company’s decision could make or break the token. Atlas, a crypto analyst, claims that even if Blackrock sells BTC to manipulate the crypto market, this is not a big deal, as they tried the same thing a few days ago. He believes that the market would gain its strength back like it did before. Additionally, considering the fixed profit perspective, this is a basic thing, as reports reveal that the firm buys Bitcoin at an average of between $50-60k, so they have already made 2x returns. However, if they sold only half of their total BTC holding, it could create a mass sell-off, initiating either a bear market or altcoin season. Bear market because Blackrock’s influence is really high. Some say it is 2-3 times the influence of Mt Gox. and Germany combined. As a result of its sell-off, fear could take over the market, dropping the bitcoin price and trading volume. Eventually, this could bring a bear market. In the other scenario, Bitcoin selling will push investors to the altcoins, initiating an altcoin season. Will Bitcoin Price Drop To $60K? The selling pressure has surrounded Bitcoin from all directions ever since it failed to hold the $100k support on Christmas. An earlier CoinGape report clarified this further as the BTC on-chain data shows weakness, restricting its rally. More importantly, Bitcoin is now moving in a critical zone, between $97,041 and $93,806, where its failure to hold its demand could drop the price to $70k. Additional damages could happen with the $14B worth of Bitcoin options expiring today. Interestingly, many analysts have predicted the Bitcoin price crash to $60k around Donald Trump’s inauguration. Blackrock selling BTC could play a critical role in that, increasing the odds of happening. The post Is BlackRock Preparing To Sell $1.8B Worth BTC? appeared first on CoinGape .
