The selling pressure that has been prominent in the cryptocurrency market in recent days has weakened with a notable change in direction around BlackRock’s spot Bitcoin ETF IBIT. While individual investors reducing their shares in the fund until the morning hours put pressure on the price, the buying side gained strength again with the new developments during the day.
ETF outflows and price pressure
According to SoSoValue data, IBIT recorded a net outflow of over $772 million as of the beginning of July. In the same period, the fund’s total net assets decreased to 44 billion dollars. During the summer pullback, Bitcoin fell from its spring peaks to around $59,000. This chart brought BlackRock’s holdings of Bitcoin to just over 3.5 percent of the global total supply.
As one of the world’s largest asset management companies, BlackRock is closely watched in institutional flows between traditional finance and the crypto market. Therefore, movements in IBIT are important not only for fund investors but also for the general direction of the spot market.
Strategy announced last week that it sold approximately $216 million worth of Bitcoin to finance dividend payments for its securities.
Harsh reaction after strategy statement
Strategy’s statement stood out as the trigger for the break in the market. The company, managed by Michael Saylor, announced last week that it was selling approximately $216 million worth of Bitcoin. The purpose of this sale was to meet the dividend obligation on the company’s securities.
Following the announcement, the Bitcoin price dropped rapidly on the stock exchanges and the local support at $62,641 was broken downwards. The initial reaction was seen as a wave in which short-term investors increased their selling.
However, this decline did not last long. At the point where the selling pressure deepened, institutional demand came to the fore and it was seen that BlackRock covered the volume coming through Coinbase Prime. Coinbase Prime is known as a platform that provides custody, transaction and liquidity services to large-scale institutional investors.
Mini dictionary: Coinbase Prime is an institutional crypto trading infrastructure designed for large funds and corporations. Arkham is an analysis platform that visualizes wallet movements by monitoring blockchain data.
Transactions worth 300 BTC attracted attention
In the Arkham data, it was seen that the purchases were made gradually, in transactions of exactly 300 Bitcoins. At the end of the process, a larger block of 1,000 Bitcoins was processed. It is estimated that the total expenditure exceeded 80 million dollars.
During the same time period, 7,500 Ethereum was purchased for BlackRock’s second fund, ETHA. Thus, it became clear that the buying interest was not limited to Bitcoin but also spread to the Ethereum side.
Big investors gathered at the lows
The recovery in the market also coincided with the moves of other major wallets. It was stated that in the last few days, major investors raised a total of more than 270,000 BTC from low levels. With the effect of this flow, the price on Bitfinex quickly returned to $ 63,739.
A similar improvement was observed in technical indicators. RSI, known as the relative strength index, rose to 65 points, indicating that buyers were gaining weight again. The sharp sales wave during the day thus turned into a turning point where corporate demand came into play.
