BlackRock Was Trending Heavily on X as Bitcoin (BTC) Price Plummeted Below $80K

BlackRock was trending heavily on X on Friday, February 28, as Bitcoin‘s (BTC) price plummeted below the $80,000 mark, reaching its lowest level

Rumors flew on Friday, February 28, as crypto behemoth Bitcoin (BTC) fell below the $80,000 level, reaching its lowest point since the beginning of 2025.

As panic set in, one claim went viral: That BlackRock (NYSE:) was dumping a half-billion dollars worth of Bitcoin.

The rumor was fueled by Crypto Beast, a well-known crypto trader on X with 658,000 followers. In a post that has since gone viral, the trader claimed that BlackRock sold $500 million of crypto on February 27.

According to the trader, the world’s largest asset manager had been buying crypto in large quantities earlier in 2024, but began to unwind its position amid market turbulence.

The post sparked heated discussions among crypto traders, with many weighing in on whether the asset manager was actively contributing to Bitcoin’s decline.

“They are selling everything. I hope people are paying attention,” one trader wrote in the comments.

Another trader added: “I’m surprised no one is making a fuss about it. They sold $500 million of crypto yesterday alone.”

However, a closer look at the data from Arkham analysis tells a different story.

As of February 28, iShares Bitcoin Trust (NYSE:) still holds about 577,919 BTC.

The fund saw a net outflow of 2,274 BTC on February 27 and a seven-day outflow of 10,595 BTC.

But these figures do not denote BlackRock selling Bitcoin. Instead, they indicate that investors in the ETF are redeeming their shares, which forces the fund to sell BTC to adjust.

This is an important distinction—BlackRock, as the fund issuer, is not choosing to sell BTC, but rather adjusting its holdings in response to investor demand.

Moreover, BlackRock seems to be increasing its exposure to Bitcoin-related assets rather than selling.

A recent Schedule 13G filing showed that the firm now owns 5% of Strategy (NASDAQ:), which is equal to about 11.2 million shares. This is a 0.91% increase from its previous 4.09% stake as of September 30, 2024.

The firm previously reduced its stake in the micro-strategy (NASDAQ:) firm in the second quarter of 2024, after disclosing a new holding in the first quarter of 2024.

At the time, micro-strategy CEO Michel Saylor said in an interview with Bloomberg that he was optimistic about Bitcoin’s prospects despite the recent downturn.

Saylor, a vocal supporter of Bitcoin, previously announced in December 2023 that his firm had no plans to sell its Bitcoin holdings even as macroeconomic headwinds battered the cryptocurrency.

The data and filings suggest that the narrative of BlackRock dumping Bitcoin is not accurate, and that retail and institutional investors are selling their ETF shares, which is driving the outflows from IBIT and other funds.

Larry Fink is not selling Bitcoin, and there is no evidence to support the claim that BlackRock is exiting its BTC position. In fact it was revealed BlackRock would add its ETF into its $150 billion model portfolio on February 28.