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Blockchain reporting firm Arkham data shows that BlackRock’s IBIT Bitcoin ETF has offloaded a whopping $1 billion in Bitcoin over the past week, as the cryptocurrency comes under renewed selling pressure. The largest cryptocurrency by market capitalization was cruising above the key $80k resistance level earlier this month, but the bears have made a fresh push to regain dominance, forcing ETF holders and retail investors to capitulate.
Arkham tweeted:
According to the tweet, BlackRock offloaded approximately $1.01 billion in BTC overall during the last 7 days. BlackRock’s associated wallets are closely monitored by 3rd-party observers like Arkham and frequently make the news as IBIT investors rotate their funds.
If BlackRock is Selling, Who is Buying?
Arkham asked an important question regarding the development: If a big institutional player like BlackRock is offloading BTC, who is snapping it up? However, the question itself is a little misleading, as BlackRock isn’t the one deciding whether to buy or sell its IBIT BTC stash; thatis entirely up to the investors. They are simply keeping their books up to date, which involves selling underlying Bitcoin holdings to match outflows.
Other major buyers of BTC include Michael Saylor’s Strategy and other crypto treasury firms, including one belonging to Donald Trump’s son Eric. However, amid the ongoing ETF slump led by BlackRock, there are fears that retail investors, who were already a no-show, would capitulate further and try to offload some BTC in the short term. The total Unrealized Profit on BTC purchases reportedly exceeded 60% when the crypto went above the key $80k resistance, so there is some incentive for retail buyers who bought it at lower prices, like $60k, to make a tidy profit and wait for the market to drop further.
 
The Future
Despite BlackRock’s IBIT bleeding $1.01 billion in BTC during the last 7 days, the outflow represents just a fraction of the company’s total holdings and doesn’t define a clear selling pattern. Macroeconomic factors and profit-taking are normal among ETF investors, and some will likely continue this behavior.
IBIT’s selling spree can be easily counterbalanced by entities like Strategy (MSTR), which continue their aggressive accumulation strategies under Michael Saylor, providing a notable bid in the market. With regular acquisitions above $1 billion, they have now become an even bigger player than BlackRock in this market.