Analysis of the Market Impact of $2.5 Billion Bitcoin Large-Scale Sell-Off and BlackRock ETF

Source: TokenPost Original Title: Bitcoin $BTC Sells $2.5 Billion in a Day… Market Manipulation Allegations Sparked by BlackRock ETF Movements Original Link:

Bitcoin $BTC Sells $2.5 Billion in a Day… Analysis of Institutional Investors’ Market Impact

Analyses suggest that over $2.5 billion worth of Bitcoin was sold within 30 minutes immediately after BlackRock’s ETF large fund transfer, causing a market plunge. Experts evaluate that repetitive movements targeting low-liquidity periods on exchanges reveal structural issues in the market.

BlackRock ETF Transfers Large Amounts of Bitcoin to Coinbase

Market analyst NoLimit observed that BlackRock’s ETF ‘IBIT’ transferred hundreds of millions of dollars worth of Bitcoin to Coinbase Prime wallets just before the stock market opened. This timing and location are typical behaviors seen when institutional investors dispose of assets or seek liquidity.

He explained that such movements are not isolated but are repeatedly observed at price decline points, indicating that sales related to ETF redemption requests are indeed occurring. Especially when large sell-offs happen during low-volume periods, their impact on the market can be even greater.

$2.5 Billion in Bitcoin Sold in 30 Minutes

Technical analyst OxNobler further explained that large-scale Bitcoin sales by major exchanges and institutions triggered a price crash. BlackRock also sold 4,945 BTC during this period.

In just 30 minutes, approximately $2.5 billion(about 35.995 trillion won) worth of Bitcoin was sold, raising suspicions of a collective market impact beyond simple ETF redemptions.

Market analysis indicates that from this point, Bitcoin’s price plummeted by over $2,300(about 3.31 million won), and within just 45 minutes, $66 million(about 94.9 billion won) worth of long positions were liquidated. As a result, approximately $60 billion(about 863.88 billion won) evaporated from the total cryptocurrency market capitalization.

Exposure of Structural Market Vulnerabilities

The occurrence of such sharp price declines and large-scale liquidations without any negative news or regulatory announcements directly reveals the structural vulnerabilities of the cryptocurrency market.

Market experts warn that institutional investors, by selectively timing asset liquidations, can cause excessive shocks to the market—even if unintentional. Since Bitcoin trading remains active even during low liquidity periods, such large-scale trades can be perceived as market distortions.

Currently, Bitcoin is trading around $87,340(about 125.73 million won), which is over 30% below its October high.

Key Points

Market Interpretation: Institutional investors, including BlackRock, selling large amounts of Bitcoin as part of ETF redemptions or risk adjustments, have caused sudden impacts on market prices. These movements are concentrated during low-volume periods, leading to price distortions and liquidations.

Strategic Points: Monitoring ETF flows, especially deposit and withdrawal timings and fund transfers between exchanges in real-time, can help predict future price movements. Short-term surges and drops may involve abnormal trading, so managing volatility and risks is essential.

Terminology Clarification

• ETF(Exchange-Traded Fund): A fund tracking specific assets; BlackRock’s IBIT is based on Bitcoin.
• Liquidation(Liquidation): The automatic closing of positions when collateral becomes insufficient due to price drops during leveraged trading.
• Coinbase Prime: An institutional trading platform often used to track large fund inflows and outflows.