BlackRock’s iShares Bitcoin Trust (IBIT) recorded a significant $22.1 million outflow, signaling a shift in institutional sentiment. The move led to a sharp BTC price drop from $47,500 to $46,800 within just 30 minutes, fueling increased market volatility.
Market Impact of BlackRock’s Bitcoin Sale
According to data from Kraken and Binance, BlackRock’s BTC sale caused the Bitcoin Volatility Index to spike from 52 to 68, highlighting increased uncertainty. Binance recorded a 20% surge in BTC trading volume, reaching 15,000 BTC.
The sell-off also triggered a wave of stop-loss orders, with Coinbase seeing a 35% rise in executed stop-loss transactions. Additionally, Bitcoin dominance dipped from 50.2% to 49.8%, indicating a shift toward altcoins.
Bitcoin & Altcoin Market Reactions
- BTC/USDT dropped by 1.5%, while BTC/ETH saw a 1.2% decline.
- Ethereum (ETH) managed a 0.5% gain, reaching $3,200 despite Bitcoin’s correction.
- The Bitcoin Fear and Greed Index declined from 55 to 48, reflecting increased caution among traders.
On-chain data showed heightened activity, with active BTC addresses surging 10% to 800,000. Meanwhile, BTC futures open interest on CME fell by 5%, landing at $10.2 billion—signaling reduced confidence among institutional traders.
BlackRock’s Bitcoin Holdings & Institutional Sentiment
Despite the outflows, BlackRock remains committed to Bitcoin, acquiring 515 BTC worth over $49 million. The firm still holds $60 billion in BTC, reinforcing its long-term investment stance. Meanwhile, asset managers like Grayscale Investments and Invesco have offloaded BTC for unspecified reasons.
ETF data reveals a two-day streak of net outflows, though BlackRock was the only asset manager recording positive inflows during this period.
Technical Analysis: Bitcoin’s Short-Term Outlook
- Relative Strength Index (RSI): Dropped from 62 to 55, signaling a shift from overbought to neutral territory.
- MACD Indicator: Shows a bearish crossover, hinting at potential downside momentum.
- NVT Ratio: Increased from 50 to 55, suggesting speculative trading is driving recent price movements.
Will Bitcoin Recover?
As BTC’s trading volume jumped 25% to 30,000 BTC, large transactions exceeding 1,000 BTC increased by 15% to 200, indicating continued institutional activity.
Traders are closely watching support levels at $46,500 and $46,000, while a breakout past $47,800 could restore bullish momentum.
