BlackRock Signals Potential Crypto Sell-Off as Crypto ETFs Face Large Outflows

BlackRock, the world’s largest asset manager, may be planning a large sell-off after moving Bitcoin and Ethereum to Coinbase as crypto ETFs continue to face large outflows.

Data from Arkham shows BlackRock deposited 1,044 BTC ($91.9 million) and 7,557 ETH ($22.41 million) into Coinbase, likely to sell.

Earlier this week, BlackRock moved 2,292 BTC and 9,976 ETH worth over $200 million into Coinbase after its Bitcoin and Ethereum ETFs experienced outflows of $198 million and $96 million, respectively.

Additionally, data from SoSoValue shows that on December 14, Bitcoin ETFs saw a net outflow of $175 million, led by BlackRock’s IBIT, with $91.37 million withdrawn. Ethereum ETFs experienced a net outflow of $53 million, with $22.25 million attributed to BlackRock’s ETHA fund.

Bitcoin Faces Pressure from Whales and Market Open Volatility

In another crypto news, the market tends to drop when the U.S. opens, a pattern called the 10 am slam by market commentator Zerohedge. Bitcoin had reached over $89,000 earlier in the day but is now trading around $87,000.

Market analyst Ted Pillows said that large Whales are adding to the selling pressure on Bitcoin and other cryptocurrencies. He noted on X that these whales are “absolutely hammering the BTC sell button” and are back to their usual activity.

In another post, Pillows explained that Bitcoin has two key areas of liquidation. On the upside, many short positions could be liquidated near $91,000, while on the downside, there’s a liquidity cluster around $86,000. He suggested that Bitcoin might first move up to trigger those short liquidations before potentially trapping long traders.

Meanwhile, analysts remain cautious on Bitcoin, even after a small rebound, because it has dropped back after every rise this month. Analyst Caleb Franzen said analysts should watch the 200-day moving average on the 4-hour chat, which is still acting as resistance.