BlackRock’s Bitcoin Liquidation Triggers Market Shift, Raises Concerns about Investor Confidence

BlackRock’s iShares Bitcoin Trust (IBIT) witnessed a significant $22.1 million outflow, signaling a shift in institutional sentiment.

BlackRock's iShares Bitcoin Trust (IBIT) ETF experienced a significant outflow of $22.1 million on Monday, highlighting a shift in institutional sentiment towards the leading cryptocurrency. While the ETF had previously seen strong inflows, the recent sell-offs reflect a change in investor confidence. The sudden decline also raises concerns about investor confidence and the potential for short-term corrections in BTC's price trajectory.

According to a tweet posted on February 13, 2025, BlackRock sold off $22.1 million of Bitcoin, causing its price to drop from $47,500 to $46,800 within 30 minutes. Market volatility surged, with the BTC Volatility Index spiking from 52 to 68. Binance recorded a 20% increase in trading activity post-sale.

Bitcoin Dominance Drops Amid Altcoin Shift

Major exchanges saw heightened trading activity, with Binance reporting a 20% rise in Bitcoin's trading volume to 15,000 BTC post-sale. Concurrently, Bitcoin dominance fell slightly from 50.2% to 49.8%, indicating a shift towards altcoins. On-chain data also showed increased activity, with active BTC addresses surging by 10% to 800,000. BTC/USDT and BTC/ETH pairs saw respective declines of 1.5% and 1.2%.

BlackRock's Bitcoin liquidation triggered a cascade of stop-loss orders, amplifying selling pressure across exchanges. Coinbase recorded a 35% rise in executed stop-loss orders within 15 minutes. The hourly moving average dropped from $47,200 to $46,900, adding to bearish sentiment. Ethereum, however, saw a modest 0.5% gain, reaching $3,200.

The Bitcoin Fear and Greed Index declined from 55 to 48, reflecting increased caution. BTC futures were also affected, with open interest on the Chicago Mercantile Exchange (CME) dropping by 5% to $10.2 billion. These movements highlight institutional players' influence on market trends and trading behavior.

Despite recent outflows, BlackRock remains committed to BTC. The asset manager acquired approximately 515 BTC, worth over $49 million. Data from Arkham Intelligence reveals contrasting moves among major asset managers, with firms like Grayscale Investments and Invesco offloading BTC for unspecified reasons.

BlackRock Holds $60 Billion in Bitcoin Assets

Bitcoin has exhibited volatility throughout 2025 but remains up by over 6% in the past month. BlackRock, managing nearly $10 trillion in assets, still holds approximately $60 billion in BTC. Market data further indicates a shift in ETF activity, with two consecutive days of net outflows. Among 11 asset managers, BlackRock was the only one to record positive inflows over the past two days.

Technical analysis shows a bearish market shift. Bitcoin's Relative Strength Index (RSI) fell from 62 to 55, indicating a transition from overbought to neutral territory. The Moving Average Convergence Divergence (MACD) signaled a bearish crossover, suggesting potential further downside momentum.

BTC's trading volume surged 25% to 30,000 BTC within an hour of BlackRock's sell-off. Large transactions (over 1,000 BTC) increased by 15% to 200, reflecting heightened institutional activity. The BTC Network Value to Transactions (NVT) ratio rose from 50 to 55, suggesting speculative trading. These trends imply a short-term bearish outlook, with traders closely monitoring price movements.