BlackRock Pulls $474M from Bitcoin, Sparking Market Pressure

The crypto market faced a turbulent week as fresh data revealed that the BlackRock crypto fund pulled nearly $474 million worth of Bitcoin in a single session. 

This represents the largest withdrawal in U.S. dollar terms since the asset manager entered the market. The massive exit added pressure to an already stressed market, where fear and heavy sell-offs dominated trading.

Institutional Outflows Hit the Crypto Market Hard

Data from SoSoValue confirmed the scale of the withdrawals. The BlackRock Bitcoin ETF saw $463.1 million leave, while Fidelity’s FBTC experienced over $2 million in outflows. 

Grayscale’s GBTC continued its trend of red flows, shedding $25.09 million. Only a smaller Grayscale product added $4.17 million, offering minimal support against the widespread withdrawals.

Other major issuers, including Ark 21Shares, Bitwise, VanEck, Invesco, Valkyrie, Franklin, and WisdomTree, reported no inflows at all. 

The record withdrawal comes just weeks after JPMorgan disclosed holding IBIT shares worth over $340 million. This signals ongoing institutional reshuffling of Bitcoin assets.

Institutions Sell Bitcoin as Market Faces Liquidity Crunch

Analysts suggest that many institutions are selling Bitcoin not out of doubt in its long-term value but due to urgent cash needs. This trend reflects a broader shortage of liquidity in the market. 

Supporting this view, data from Daan Crypto Trades highlighted the steep price declines across most crypto assets. His charts show that the majority of coins dropped between 10% and 30% over the past month. Only a few dozen saw gains above 30%.

Daan noted that performance has been uneven throughout the year, emphasizing that investors cannot hold every token and expect consistent gains. 

He advised traders to stay nimble or focus on Bitcoin and other major assets. He noted that liquidity tends to concentrate around these key coins during periods of market stress.

Robert Kiyosaki Stays Confident in Bitcoin Amid Market Downturn

Despite the downturn, notable investors remain optimistic. Robert Kiyosaki, the popular author, reaffirmed that he is holding his Bitcoin and plans to buy more once the crash ends. 

He described Bitcoin as “real money” rather than a speculative asset, emphasizing that its fixed supply offers long-term strength. Kiyosaki also highlighted his personal approach to market volatility. 

Unlike many, he does not require immediate cash, allowing him to remain calm while others panic. He mentioned the “Big Print” idea from analyst Lawrence Lepard. He said that more government debt could lead to creation of new money, which might raise Bitcoin’s value.

Kiyosaki urged followers to study markets, learn from failures, and form supportive groups. According to him, such groups help individuals stay grounded during sharp downturns. 

Short- and Long-Term Bitcoin Bullish Outlook

Currently, Bitcoin is a far cry from its ATH above $126,000, but JPMorgan analysts believe that it still has potential to rise to about $170,000 in the next 6 to 12 months. 

This prediction came from a comparison of Bitcoin and gold, taking into account Bitcoin’s price fluctuations. Analysts think that the coin still has a lot of growth potential in the current market

Explicitly, these JPMorgan analysts believe strongly that the worst is over for the flagship crypto. This was after October 10, saw crypto liquidations topped $19 billion from BTC, ETH, and several other digital assets.